Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Fourth Revised Sheet No. 705 Fourth Revised Sheet No. 705

Superseding: Third Revised Sheet No. 705

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RATE SCHEDULE MO-1

Kern River Firm Transportation Services

(Continued)

ARTICLE I - DEFINITIONS (Continued)

from Transporter's System, as listed on the Operationally Available and

Unsubscribed Capacity reports on Transporter's Designated Site.

Capacity in excess of Shipper's Delivery Point Entitlement at a Primary

Delivery Point shall be available to Shipper on a Secondary Delivery

Point basis; provided, however, that any quantities scheduled by Shipper

for Transportation in excess of Shipper's Transportation Maximum Daily

Quantity shall be considered Authorized Overrun Service.

1.13 "Designated Site" shall mean an Internet address designated by

Transporter and any service requester for the receipt or delivery of

NAESB WGQ standardized data sets.

1.14 "FERC" or "Commission" shall mean the Federal Energy Regulatory

Commission or any federal commission, agency, or other governmental body

or bodies succeeding to, lawfully exercising or superseding any powers

which, as of the date hereof, are exercisable by the Federal Energy

Regulatory Commission.

1.15 "Firm Service" shall mean a class of service that receives the highest

priority on Transporter's system and that is not subject to interruption

except as permitted in Articles IX, XIII, and XIV herein. Transporter's

total firm service obligations shall not exceed the design capacity of

its system, nor shall Transporter's total firm service obligations at a

receipt point ("Receipt Point Entitlements") or at a delivery point

("Delivery Point Entitlements") exceed the design capacity of any such

facility.

1.16 "Gas" or "Natural Gas" shall mean any mixture of hydrocarbons or of

hydrocarbons and non-combustible gases, in a gaseous state, consisting

essentially of methane. Such Gas may be either in its natural state

produced from wells, including casinghead and residue Gas, or after

manufacture or other methods of producing synthetic Gas. For the

purpose of determining whether Gas is in conformity with the terms of

this Rate Schedule, Article V herein shall apply.