Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/01/2000, Docket: RP00-288-000, Status: Effective

Original Sheet No. 719 Original Sheet No. 719 : Effective

RATE SCHEDULE MO-1

Kern River Firm Transportation Services

(Continued)

ARTICLE IV - OPERATING PROCEDURES (Continued)

4.2 Balancing of Gas. (Continued)

deviate from its standard operating and accounting procedures in

order to alleviate any such imbalances.

4.2.2 At End of Agreement. In the event that at the end of the term of

the Transportation Service Agreement there are cumulative

imbalances in receipts and deliveries, Transporter and Shipper

shall correct such cumulative imbalances as soon as practicable

after the end of the term of the Transportation Service Agreement.

All calculations of balances and imbalances and corrections under

this Section 4.2.2 shall be made on a Thermally Equivalent basis.

4.2.3 Uniform Deliveries. Transporter and Shipper undertake to maintain

receipts and deliveries on a uniform daily basis to the maximum

extent practicable, subject to the provisions of this Rate

Schedule as to scheduling and balancing.

4.3 Records of Scheduled Quantities. Transporter shall keep accurate

records of the quantities of Gas scheduled for Transportation and any

imbalances, which records shall be made available to Shipper at its

request.

If Shipper's Gas is commingled with other Gas at a Delivery Point, the

scheduling arrangements and Transporter's records shall include

procedures acceptable to Shipper providing for the allocation of the

total volumes at such Delivery Point. If Shipper's Gas is commingled

with other Gas at a Receipt Point. Shipper and Transporter shall use

every reasonable effort to have all such shippers tendering Gas at