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. 727 Original Sheet No. 727 : Effective

RATE SCHEDULE MO-1

Kern River Firm Transportation Services

(Continued)

ARTICLE V - QUALITY OF GAS (Continued)

5.5 Failure to Conform. (Continued)

nominations or deliveries of non-conforming Gas until,

inclusive of the reductions of non-conforming

components similarly required of any other non-

conforming shippers, the Composite Gas Stream is again

calculated not to exceed 93% of the requirements of

Section 5.1 herein.

(4) Should Shipper fail to take adequate corrective action

to comply with Transporter's requirements, Transporter

shall have the right to curtail receipts from Shipper

as described in Section 5.5(a) above.

(c) Continuation of Obligation to Pay. In the event Transporter

refuses to accept Gas tendered by Shipper because such Gas

does not conform to the specifications set forth herein,

Shipper shall not be relieved of its obligation to pay any

Reservation Charge provided for in Shipper's Transportation

Service Agreement.

5.6 Processing Rights.

All products removed from the Gas prior to receipt by Transporter shall

remain the property of Shipper. All liquids or liquefiable hydrocarbons

recovered by Transporter, after receipt of Gas hereunder by Transporter

and prior to delivery of Gas by Transporter to Shipper, shall be and

remain the exclusive property of Transporter.