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. 847 Original Sheet No. 847 : Effective

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 6 - RATES (Continued)

6.5 Selection of Shipper's Rate. (Continued)

be effective. Upon the occurrence of either of the events

described in (ii) and (iii) herein, Shipper shall have the right

(but not the obligation) to select a different value for Shipper's

Rate, and the value so selected by Shipper shall continue in

effect throughout the remainder of the Contract Year during which

such selection is made, subject to Shipper's right to select a new

value of Shipper's Rate upon the next occurrence of either of the

events described in (ii) or (iii) herein.

6.5.3 Limitation on Selection. Notwithstanding the provisions of

Sections 6.5.1 and 6.5.2, if any Available Rate Schedule or any

agreement on which an Alternate Rate is based contains a "Time-

Based Rate," i.e., expressly provides for two or more specified

rate levels (i.e., stated dollar amounts per unit of Gas

transported or per unit of reserved capacity), differentiated on

the basis of time (e.g., seasonal rates or peak/off-peak rates),

and if such specified rate levels are identified on Transporter's

Rate List in accordance with Section 6.6.1 hereof, then the

automatic transition from one such rate level to another, pursuant

to the terms of such Available Rate Schedule or agreement, shall

not provide Shipper with the right to select a different Shipper's

Rate pursuant to Section 6.5.1 or Section 6.5.2 hereof.

6.6 Determination of Alternate Rates.

6.6.1 Transporter's Rate List. To enable Shipper to select a new

Shipper's Rate at the beginning of each Contract Year and upon the

occurrence of any of the events described In Sections 6.5.1 and

6.5.2 hereof, Transporter shall deliver to Shipper on or before

the first Day of each Contract Year and within ten (10) Days of

the occurrence of each such event, a written notice

("Transporter's Rate List") identifying: (i) each Available Rate