Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 05/01/2002, Docket: RP01-190-002, Status: Effective

First Revised Sheet No. 708 First Revised Sheet No. 708 : Effective

Superseding: Original Sheet No. 708

RATE SCHEDULE MO-1

Kern River Firm Transportation Services

(Continued)

ARTICLE I - DEFINITIONS (Continued)

1.32 "Thermally Equivalent" shall mean an equal number of Btu's. The

determination of Thermally Equivalent Quantities shall be accomplished

by multiplying the unit of measurement, as provided in Section 6.2.5

herein, by the Total Heating Value adjusted to the standard conditions

of the measured Quantities.

1.33 "Total Heating Value" shall mean the number of Btu's liberated by the

complete combustion of one Cubic foot of Gas at a constant pressure of

14.73 Psia and temperature of 60 degrees Fahrenheit with air at the same

pressure and temperature and with water formed by combustion condensed

to the liquid state. The average Total Heating Value in any Month shall

be the volume-weighted average of the Total Heating Values for each Day

during such Month, adjusted to reflect the actual water vapor content of

the Gas delivered.

1.34 "Transportation" shall mean the receipt of Gas of Shipper at Receipt

Point(s), and the delivery of Thermally Equivalent Quantities by

Transporter to Shipper or for Shipper's account (after making allowance

for any requisite fuel and loss reimbursement) at Delivery Point(s).

1.35 Transportation Maximum Daily Quantity or TMDQ: the Quantity reflected in

a Shipper's Transportation Service Agreement, (exclusive of fuel used

and lost and unaccounted-for gas), expressed in Dekatherms, that

Transporter is obligated to receive for Transportation from Shipper on

any Day at the Receipt Points, and transport and deliver on any Day to

the Delivery Points specified in Shipper's Transportation Service

Agreement. For agreements executed on an Mcf basis, Transporter will

convert the MDQ to a TMDQ using the methodology set out in Section 25 of

the General Terms and Conditions of this tariff.

1.36 "Volume" shall mean the number of units of gas, either specified in Mcf

or Dth.

1.37 "Week" shall mean the seven consecutive Days commencing with the Day

Tuesday.