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. 726 Original Sheet No. 726 : Effective

RATE SCHEDULE MO-1

Kern River Firm Transportation Services

(Continued)

ARTICLE V - QUALITY OF GAS (Continued)

5.5 Failure to Conform. (Continued)

(1) Transporter shall determine which Gas nominations or

receipts do not conform with Section 5.1. For each

Shipper, whose Gas nominations or deliveries to

Transporter do not conform with Section 5.1,

Transporter shall identify the quantity of the Gas

component that is in excess of the limits set forth in

Section 5.1, compute a total thereof for all shippers,

and calculate the percentage of said total for each

Shipper.

(2) The calculated percentage shall be used to determine

the quantity of non-conforming component that each of

the non-conforming shippers must eliminate from its

Gas nominations and/or receipts, in order to bring

said Composite Gas Stream back to within 93% of the

quality specification described in Section 5.1. The

required reduction of the non-conforming component, as

well as the newly calculated maximum allowable

concentration of the non-conforming component in

Shipper's Gas deliveries to Transporter, shall be

communicated to each of the non-conforming shippers.

(3) Shipper may reduce the non-conforming component to the

maximum allowable concentration in 5.5(b)(ii)(2) above

by either replacing nominated or existing Gas

deliveries to Transporter with Gas containing less of

the non-conforming component, or by reducing