Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Original Sheet No. 838 Original Sheet No. 838 : Superseded

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

5.10 Invoicing and Payment. (Continued)

The foregoing credit shall include any interest on such amounts

paid by the Replacement Shipper which may have accrued commencing

ten (10) Days after the date on which the relevant payment from

the Replacement Shipper was received by Transporter.

(d) Failure by the Releasing Shipper or the Replacement Shipper to pay

timely all or any portion of any invoice from Transporter,

including any failure by the Releasing Shipper to pay timely the

amount of any Default Invoice, shall entitle Transporter to

exercise the remedies available under the Base Transportation

Service Agreement and this Tariff, including suspension and

termination of service to the Releasing Shipper and the

Replacement Shipper, as warranted, as well as any other remedies

available to Transporter. In the event of failure by the

Replacement Shipper to pay timely all or any portion of any

invoice from Transporter, the Releasing Shipper shall likewise by

entitled to recall temporarily or permanently all of its

Transportation rights which were released to the Replacement

Shipper under the relevant Release, provided, however, that the

Releasing Shipper must provide both Transporter and the

Replacement Shipper with not less than thirty (30) Days prior

written notice of its intent to exercise such recall.

(e) Any and all increases in the applicable Tariff Reservation Rate or

the applicable Tariff Reservation Surcharges shall remain the

primary responsibility of the Releasing Shipper to the extent

provided in the Releasing Shipper's Service Agreement; provided,

however, that the Releasing Shipper may provide in its Release

Request that the Release Reservation Rate and the Release

Reservation Surcharges will increase in accordance with any

corresponding increases in the applicable Tariff Reservation Rate

or the applicable Tariff Reservation Surcharges. Any refunds or

credits of any rates or charges ordered by the FERC shall be paid

by Transporter solely to the Base Shipper, subject however to

Transporter's right to seek relief at the FERC or in the courts

from the obligation to make any such refunds or credits.