Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Second Revised Sheet No. 713 Second Revised Sheet No. 713 : Effective

Superseding: First Revised Sheet No. 713

RATE SCHEDULE MO-1

Kern River Firm Transportation Services

(Continued)

ARTICLE III - TRANSPORTATION RATES AND CHARGES (Continued)

3.2 Charges (Continued)

3.2.2 Monthly Commodity Charge Amount. A monthly amount calculated by

multiplying the Commodity Rate as shown on Sheet No. 5 by each Dth

of Gas actually received by Transporter from Shipper each Day

during the Billing Month, less fuel use and lost and unaccounted

for Gas, for Firm Service pursuant to Section 2.2.1 herein.

3.2.3 Authorized Overrun Charge Amount. An amount calculated by

multiplying the Authorized Overrun Charge as specified on Sheet

No. 5 by each Dth of Gas actually received by Transporter from

Shipper each Day during the Billing Month in excess of Shipper's

TMDQ and imbalance adjustments as set out in Section 4.2.1 herein,

less fuel use and lost and unaccounted for Gas, for Authorized

Overrun Service pursuant to Section 2.2.2 herein.

3.2.4 Annual Charge Adjustment Amount. An amount calculated by

multiplying the FERC Annual Charge Adjustment Surcharge, if

applicable, as defined in Section 3.1.1(h) herein, shown on

Sheet No. 5 , by each Dth of Gas actually received by

Transporter from Shipper during the Billing Month, less fuel use

and lost and unaccounted for Gas.