Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 08/01/2009, Docket: RP09-723-000, Status: Effective

First Revised Sheet No. 634 First Revised Sheet No. 634

Superseding: Original Sheet No. 634

. RATE SCHEDULE UP-1 .

Kern River Firm Transportation Services

(Continued)

ARTICLE VIII - INVOICING AND PAYMENT

8.1 Invoicing. When information necessary for invoicing by Transporter is in

the control of Shipper, Shipper shall furnish such information to

Transporter on or before the fifth (5th) Business Day of the Month

following the Invoicing Month. NAESB WGQ 2.3.7: "The cutoff for closing

of measurement is 5 business days after business month." If information

necessary for invoicing is not available in time for Transporter to

render a timely statement, Transporter may use reasonable estimates and

subsequently reconcile such estimates with actual information. NAESB

WGQ 3.3.14: "The imbalance statement should be rendered prior to or with

the invoice, and the transportation invoice should be prepared on or

before the 9th business day after the end of the production month.

Rendered is defined as post-marked, time-stamped, and delivered to the

designated site." Shipper and Transporter shall have the right to

examine at reasonable times books, records and charts of the other to

the extent necessary to verify the accuracy of any statement, charge or

computation made under or pursuant to any of the provisions hereof.

(a) Disputed invoices: NAESB WGQ 3.3.19: "If invoice is in dispute,

pay portion not in dispute and provide documentation identifying

basis for the dispute."

8.2 Payment. On or before the later of the twenty-fifth Day of each Month

or 10 days after receipt of a statement by Shipper (Due Date), or the

previous Business Day in the event the Due Date is a weekend or holiday,

Shipper shall pay Transporter by wire transfer of immediately available

funds to a depository designated by Transporter, the amount due for the

Billing Month. Subject to the provisions of Section 9.1.2 and 13.1

hereof, Shipper shall make payment of that portion of the statement

identified as the Monthly Demand Charge in full, irrespective of any

dispute as to the invoiced amount of said Monthly Demand Charge, and

Shipper shall not be entitled to any abatement or setoff against said

amount, including, but not limited to, those alleged to be due by reason

of any past, present or future claims or other rights of Shipper against

Transporter or any other person or entity whether in connection herewith

or any unrelated transaction. Nothing contained herein shall prejudice

or limit Shipper's ability to withhold amounts disputed in good