Kern River Gas Transmission Company

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 08/01/2004, Docket: RP04-339-000, Status: Effective

Third Revised Sheet No. 714 Third Revised Sheet No. 714 : Effective

Superseding: Second Revised Sheet No. 714

RATE SCHEDULE MO-1

Kern River Firm Transportation Services

(Continued)

ARTICLE III - TRANSPORTATION RATES AND CHARGES (Continued)

3.2 Charges (Continued)

3.2.5 (Reserved)

3.2.6 Negotiated Rates: Notwithstanding the foregoing provisions of this

Article 3, Transporter and Shipper may mutually agree to

Negotiated Rates for service hereunder as provided in Section 23

of the General Terms and Conditions. ACA surcharges pursuant to

Article 3.2.4 of this rate schedule, as well as fuel reimbursement

pursuant to Section 12 of the General Terms and Conditions will be

applied to Shippers paying Negotiated Rates in the same manner as

they are applied to Shippers paying Recourse Rates.

3.3. Prior to the Commencement Date. Prior to the Commencement Date, as

defined in Section 1.5 herein, Shipper shall pay Transporter for

Transportation pursuant to this Rate Schedule an amount equal to the sum

of (a), (b) and (c) below:

(a) An amount calculated by multiplying the lesser of the Projected

Transportation Rate or the Maximum Transportation Rate by each Dth

of Gas actually received by Transporter from Shipper each Day,

less fuel use and lost and unaccounted for Gas. Provided,

however, if Commencement Date has not occurred by 60 Days after

Start-Up Date, then Shipper shall, after such 60-Day period and

prior to Commencement Date, pay an amount calculated by