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. 642 Original Sheet No. 642 : Effective

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE XII - STATUTORY REGULATION

12.1 Filing Requirement. Each party hereto shall proceed with diligence to

file applications with the FERC and any other governmental authorities

for any authorizations necessary to carry out their respective

obligations under the Transportation Service Agreement.

12.2 Conformance with Laws. Notwithstanding any other provisions hereof, the

Transportation Service Agreement and all rights and obligations arising

under it are subject to all valid legislation, both State and Federal,

and to all valid present and future orders, rules and regulations of

duly constituted authorities, now or hereafter having jurisdiction.