Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 05/01/2002, Docket: RP01-190-002, Status: Effective

First Revised Sheet No. 807 First Revised Sheet No. 807 : Effective

Superseding: Original Sheet No. 807

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 1 - DEFINITIONS (Continued)

1.28 "Monthly Commodity Charge" shall mean the commodity, usage or

transportation rate component of Shipper's rate for service hereunder to

be paid by Shipper each month pursuant to Section 7.2.2 herein.

1.29 "Monthly Reservation Charge" shall mean the reservation component of

Shipper's rate for service hereunder to be paid by Shipper each month

pursuant to Section 7.2.1 herein.

1.30 "NGA" or "Natural Gas Act" shall mean the Natural Gas Act of 1938, as

amended, 15 U.S.C. Sec. 717, et seq.

1.31 "NGPA" or "Natural Gas Policy Act" shall mean the Natural Gas Policy Act

of 1978, as amended, 15 U.S.C. Sec. 3301, et seq.

1.32 "Overrun Gas" shall mean any Gas Quantity in excess of Shipper's

Transportation Maximum Daily Quantity which, upon prior request of

Shipper and with Transporter's approval, Shipper tenders and Transporter

accepts for Transportation on any Day.

1.33 "Overthrust Area" shall mean that geological Natural Gas production area

located primarily in southwestern Wyoming and extending into

northeastern Utah.

1.34 "Overthrust Pipeline" shall have the meaning stated in Section 4.2.

1.35 "Primary Term" shall have the meaning stated in Section 3.1.

1.36 "psia" shall mean pounds per square inch, absolute.

1.37 "psig" shall mean pounds per square inch, gauge.

1.38 "Quantity" shall mean the number of units of gas, either specified in

Mcf or Dth.