Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 09/06/2004, Docket: RP04-444-000, Status: Effective

Third Revised Sheet No. 808 Third Revised Sheet No. 808 : Effective

Superseding: Second Revised Sheet No. 808

. .

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 1 - DEFINITIONS (Continued)

1.39 "Receipt Point" shall mean a point on Transporter's System at which

Shipper or Shipper's designee may tender Gas to Transporter and

Transporter shall receive Gas from Shipper or for Shipper's account.

Receipt Points shall be either Primary Receipt Points, which shall be

those set forth on Exhibit "A" to the Firm Transportation Service

Agreement, as amended from time to time, or Secondary Receipt Points,

which shall be all other points at which Transporter is authorized to

receive Gas into Transporter's System, as listed on the Operationally

Available and Unsubscribed Capacity reports on Transporter's Designated

Site. Capacity in excess of Shipper's Receipt Point Entitlement at a

Primary Receipt Point shall be available to Shipper on a Secondary

Receipt Point basis; provided, however, that any quantities scheduled by

Shipper for Transportation in excess of Shipper's Transportation Maximum

Daily Quantity shall be considered Authorized Overrun Service.

1.40 "Receipt Point Entitlements" shall mean the maximum quantity of Natural

Gas, as listed on Exhibit "A" to the Firm Transportation Service

Agreement, as amended from time to time, that Shipper may tender to

Transporter and Transporter shall receive from Shipper at the Primary

Receipt Points on any Day.

1.41 (Reserved)

1.42 (Reserved)

1.43 "Shipper's Fuel Gas Volumes" shall have the meaning stated in Section

12.1.

1.44 "Shipper's L&U Volumes" shall have the meaning stated in Section 12.2.

1.45 (Reserved)

1.46 (Reserved)

1.47 "Thermally Equivalent" shall mean equivalent in the number of Btu's.