Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Original Sheet No. 835 Original Sheet No. 835 : Superseded

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

5.10 Invoicing and Payment. (Continued)

(b) The Releasing Shipper shall initially be invoiced only for the

reservation and usage rates and any and all other applicable

charges and surcharges which are related to the service provided

by Transporter under the Releasing Shipper's Service Agreement

subsequent to any and all Releases thereunder, and for any

additional amount by which the Releasing Shipper's combined

reservation rate and reservation surcharges for any Month may

exceed the Total Release Reservation Charge for any corresponding

Month during the term of any Release by the Releasing Shipper.

Transporter shall invoice the Replacement Shipper and the

Replacement Shipper shall pay Transporter in accordance with

Article 5 of the General Terms and Conditions of this Tariff based

upon the Total Release Reservation Charge, usage charge and any

and all other applicable charges and surcharges incorporated in

the Released Transportation Service Agreement. The usage rate and

any and all volumetric charges and surcharges to be paid to

Transporter by the Replacement Shipper (respectively, the "Release

Usage Rate" and "Release Volumetric Surcharges") shall be the

maximum usage rate and maximum volumetric charges and surcharges

applicable to this Governing Rate Schedule, as such rates,

charges, and surcharges may be revised from time to time

(respectively, the "Tariff Volumetric Rate" and "Tariff Usage

Surcharges"), unless otherwise agreed in writing by Transporter

and the Replacement Shipper prior to the date of commencement of

the Release Term.