Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Original Sheet No. 860 Original Sheet No. 860 : Effective

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 9 - FORCE MAJEURE

9.1 Definition of Force Majeure. Neither Transporter nor Shipper shall be

deemed to have breached any of its obligations under the Firm

Transportation Service Agreement as a result of any act, omission or

circumstance occasioned by or in consequence of any blockades,

insurrections, riots, epidemics, floods, washouts, landslides,

mudslides, earthquakes, extreme cold or freezing weather, lightning,

restraint of rulers and peoples, civil disturbances, explosions,

breakage or freezing of or accident to machinery or line of pipe, the

order of any court or governmental authority having jurisdiction, and

any other cause, whether of the kind herein enumerated or otherwise, not

reasonably within the control of the party claiming suspension and which

by the exercise of due diligence such party is unable to prevent or

overcome ("Force Majeure"). Failure to prevent or settle any strike or

strikes shall not be considered a matter within the control of the party

claiming suspension.

Such causes or contingencies affecting the performance under the Firm

Transportation Service Agreement by either Transporter or Shipper,

however, shall not relieve either party of liability in the event of its

concurring negligence or in the event of its failure to use due

diligence to remedy the situation and to remove the cause in an adequate

manner and with all reasonable dispatch, nor shall such causes or

contingencies affecting such performance relieve either party from its

obligations to make payments of amounts then due in respect of Gas

theretofore delivered. Provided, however, that except as otherwise

provided in Section 9.3 hereof, nothing in this Article 9 shall relieve

Shipper of its obligation to pay the demand rate or reservation rate

component of Shipper's Rate.

9.2 Due Diligence. Subject to the provisions of Section 9.3 following, no

such cause affecting the performance of either party shall continue to

relieve such party from its obligation after the expiration of a

reasonable period of time within which by the use of due diligence such

party could have remedied the situation preventing its performance, nor

shall any cause relieve either party from any obligation unless such

party shall give notice thereof in writing to the other party pursuant

to Section 9.4 with reasonable promptness; and like notice shall be

given upon termination of such cause, pursuant to Section 9.5.