Kern River Gas Transmission Company

Second Revised Volume No. 1

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

First Revised Sheet No. 859 First Revised Sheet No. 859

Superseding: Original Sheet no. 859

. RATE SCHEDULE SH-1 .

Kern River Firm Transportation Services

(Continued)

ARTICLE 8 - PAYMENT (Continued)

8.3 Overcollections. (Continued)

regulations under the Natural Gas Act. If such regulations become

inapplicable to such amounts, the rate will be bases on the prime rate

of the Chase Manhattan Bank, NA or the maximum interest rate otherwise

permitted by law or regulation, whichever is less.

8.4 Disputed Invoices. NAESB WGQ 3.3.19: "If invoice is in dispute, pay

portion not in dispute and provide documentation identifying basis for

dispute."

8.5 Overcharges/Undercharges. In the event an error is discovered in any

invoice render by Transporter, Shipper must contest such amount in

writing within six (6) months from the date that the invoice was

rendered, otherwise the invoice will be deemed correct. Transporter

will correct any invoicing errors (after a rebuttal period of not more

than three months) within thirty (30) days after the Shipper and

Transporter agree or the date that the invoicing error occurred.

8.6 Financial Requirements. Upon request by Transporter, Shipper will

render to Transporter within thirty (30) Days after receipt of

Transporter's request complete audited financial statements prepared in

accordance with generally accepted accounting principles.