Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Original Sheet No. 625 Original Sheet No. 625 : Effective

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE V - QUALITY (Continued)

5.5 Failure to Conform. (Continued)

(4) Should Shipper fail to take adequate corrective action

to comply with Transporter's requirements, Transporter

shall have the right to curtail receipts from Shipper

as described in Section 5.5(a) above and it shall be

relieved of its obligations hereunder to the extent of

rightful suspension for the duration of such time as

the Gas does not meet such specifications, provided,

however, that Transporter shall not apply the

provisions of this Section 5.5 to Shipper in a manner

less favorable than Transporter applies the same or

similar provisions to other shippers, and provided

further that Transporter shall not apply the

provisions of this Section 5.5 to Shipper so long as

the aggregate of all Gas tendered to Transporter by

Shipper at all Receipt Points complies with the

quality specifications of Section 5.2 herein.

(c) Continuation of Obligation to Pay. In the event Transporter

refuses to accept Gas tendered by Shipper because such Gas does

not conform to the specifications set forth herein, Shipper shall

within a reasonable time make a diligent effort to correct such

failure by treatment or dehydration consistent with prudent

operations and by means which are economically feasible in

Shipper's opinion so as to deliver Gas conforming to the above

specifications. Shipper shall not be relieved of its obligation

to pay any Monthly Demand Charge provided for in Shipper's

Transportation Service Agreement during the time such Gas does not

conform to the specifications set forth herein.