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. 637 Original Sheet No. 637 : Effective

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE VIII - INVOICING AND PAYMENT (Continued)

8.8 Financial Requirements. (Continued)

If, at any time during the term hereof, Shipper receives a written

notice from Transporter that Transporter has reasonable grounds for

insecurity as to Shipper's performance hereunder, describing such

grounds in reasonable detail, Shipper shall, within ten Days after

receipt of such notice, provide Transporter with adequate assurance of

Shipper's performance hereunder. If Transporter reasonably deems

Shipper's assurance of performance to be inadequate under the

circumstances, Transporter may request in writing to Shipper one or more

forms of security or assurance of performance that Transporter will

consider adequate. In such event, Shipper agrees to provide such

security or assurance in a reasonable form specified by Transporter.