Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2000, Docket: RP00-288-000, Status: Effective

Original Sheet No. 623 Original Sheet No. 623 : Effective

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE V - QUALITY (Continued)

5.5 Failure to Conform.

(a) If the Gas offered for Transportation by Shipper shall fail at any

time to conform to any of the specifications set forth in Section

5.2, then Transporter shall have the right, upon written

(including by telecopy) or oral notice to Shipper to be followed

by written notice, to immediately refuse to accept all or any

portion of such Gas.

(b) Notwithstanding the foregoing, however, in the event the

provisions of Section 5.3 are in effect, the following procedures

shall apply:

(i) When the calculated quality of the Composite Gas Stream

approaches 90% of the allowable maximums for those Gas

components whose specifications are subject to blending,

then Transporter shall notify all shippers whose Gas does

not conform with Section 5.1.

(ii) When the calculated quality of the Composite Gas Stream

equals or exceeds 95% of the allowable maximums for those

Gas components whose specifications are subject to blending,

Transporter shall immediately notify all shippers whose Gas

does not conform, that Transporter will commence curtailing

receipt of their Gas in the following manner:

(1) Transporter shall determine which Gas nominations or

receipts do not conform with Section 5.1. For each

Shipper, whose Gas nominations or deliveries to

Transporter do not conform with Section 5.1,

Transporter shall identify the quantity of the Gas

component that is in excess of the limits set forth in

Section 5.1, compute a total thereof for all such

shippers, and calculate the percentage of said total

for each such Shipper.