Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 08/01/2009, Docket: RP09-723-000, Status: Effective

First Revised Sheet No. 856 First Revised Sheet No. 856

Superseding: Original Sheet No. 856

. RATE SCHEDULE SH-1 .

Kern River Firm Transportation Services

(Continued)

ARTICLE 7 - INVOICING

7.1 Volume Statements. Transporter and Shipper shall provide the following

information concerning Gas volumes received by Transporter and delivered

to Shipper during the preceding month.

7.1.1 Shipper's Statements. For those Receipt Points where Gas is being

received by Transporter for the account of Shipper and other

shippers, Shipper or its agent shall submit to Transporter and to

all shippers whose Gas is being received by Transporter at the

specific Receipt Points, on or before the fifth (5th) Business Day

of the Month a statement indicating the allocation of the total

volume of Gas received by Transporter among all pertinent shippers

("Allocation Statement").

7.1.2 Transporter's Statements. When information necessary for

invoicing by Transporter is in the control of Shipper, Shipper

shall furnish the actual information to Transporter on or before

the fifth (5th) Business Day of the Month following the Billing

Month. NAESB WGQ 2.3.7: "The cutoff for closing of measurement is

5 business days after business month." If such information is not

available for Shipper to furnish to Transporter on or before such

fifth (5th) Business Day then Transporter may furnish an estimated

invoice to Shipper, subject to appropriate adjustments after

Shipper has obtained such actual information and furnished same to

Transporter. NAESB WGQ 3.3.14: "The imbalance statement should be

rendered prior to or with the invoice, and the transportation

invoice should be prepared on or before the 9th business day after

the end of the production month. Rendered is defined as

postmarked, time-stamped, and delivered to the designated site."

Such statement will include, in reasonable detail, the volumes and

thermal content of Shipper's Gas, indicating separately regular

volumes and Overrun Gas volumes received by Transporter at each

Receipt Point and the volumes and thermal content of Shipper's Gas

separately designated as above, delivered by Transporter at each

Delivery Point pursuant to the Firm Transportation Service

Agreement during the preceding month.