Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 01/01/2004, Docket: RP04- 68-000, Status: Effective

Second Revised Sheet No. 857 Second Revised Sheet No. 857 : Effective

Superseding: First Revised Sheet No. 857

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 7 - INVOICING (Continued)

7.1 Volume Statements. (Continued)

7.1.3 Time Requirement. When information necessary for billing by

Transporter is in control of Shipper, Shipper or its agent will

furnish such information to Transporter on or before the fifth

(5th) Business Day of the month.

7.2 Transporter's Invoice. On or before the ninth (9th) Business Day of

each Month Transporter shall prepare an invoice for service rendered

during the preceding Month. Imbalance statements should be generated at

the same time or prior to the transportation invoice. Such invoices

shall contain the following information:

7.2.1 Monthly Reservation Charge. The applicable Daily

Reservation/Demand Rate provided hereunder, multiplied by

Shipper's then applicable Demand Maximum Daily Quantity, and the

result multiplied by the number of days in the month ("Monthly

Reservation Charge").

7.2.2 Monthly Commodity Charge. If applicable, a transportation, usage,

or commodity rate provided hereunder multiplied by the total

quantity of Gas received by Transporter from Shipper for

Transportation (i.e., excluding Shipper's Fuel Gas Volumes and

Shipper's L&U Volumes) at all Receipt Points during the month

("Monthly Commodity Charge").

7.2.3 Authorized Overrun Charge. If applicable, an Authorized Overrun

Charge equal to the Authorized Overrun Rate provided hereunder,

multiplied by the total Quantity of Gas in excess of Shipper's

Transportation Maximum Daily Quantity received by Transporter from

Shipper for Transportation at all Receipt Points each Day during

the month.