Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 01/01/2004, Docket: RP04- 68-000, Status: Effective

Second Revised Sheet No. 643 Second Revised Sheet No. 643 : Effective

Superseding: First Revised Sheet No. 643

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE XIII - SERVICE CONDITIONS

13.1 Alterations and Repairs. When Transporter needs temporarily to curtail

or interrupt service to Shipper hereunder in any portion of

Transporter's System for the purpose of making necessary alterations or

repairs therein, Transporter shall give Shipper as much notice as

possible, but not less than 60 Days except in case of emergency.

Transporter shall endeavor to arrange such curtailments or interruptions

so as to inconvenience Shipper as little as possible and to continue

same only for such time as is necessary. If, pursuant to this Section,

Transporter curtails service to Shipper during any Contract Year by an

aggregate Quantity which exceeds three percent (3%) of the product of

Shipper's TMDQ times 365, then the Monthly Demand Charge Amount, for the

Month in which the aggregate curtailed Quantity first exceeds such 3%

threshold in such Contract Year, and for each Month thereafter of such

Contract Year in which a curtailment pursuant to this Section occurs,

shall be reduced by an amount calculated by multiplying each Dth of Gas

curtailed by Transporter pursuant to this Section during such Month in

excess of the 3% threshold described above by an amount equal to the

applicable Daily Reservation/Demand Rate. Notwithstanding the

foregoing, there shall be no reduction to the Monthly Demand Charge

Amount for any interruption or curtailment of service at a Secondary

Receipt Point or Secondary Delivery Point.

13.2 Liability of Parties. Transporter and Shipper each assume full

responsibility and liability for the installation, presence, maintenance

and operation of their respective properties and facilities and shall

indemnify and hold harmless the other from all liability and expense on

account of any and all damages, claims, or actions, including injury to

and death of persons, arising from any act, accident or omission in

connection with the installation, presence, maintenance and operation of

properties and facilities of the indemnifying party, except to the

extent, if any, that such liability or expense is caused by, or arises

out of, the gross negligence or willful misconduct of the non-

indemnifying party or its agents or employees. Transporter shall have

no obligation to odorize gas delivered to Shipper under this agreement

nor to maintain any odorant level.