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. 863 Second Revised Sheet No. 863 : Effective

Superseding: First Revised Sheet No. 863

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 9 - FORCE MAJEURE (Continued)

9.3 Monthly Reservation Charge Adjustments. (Continued)

(i) the Quantity of gas tendered for Transportation by

Shipper at all Primary Receipt Points, that

Transporter was unable to receive at such points

and/or to deliver at a Primary Delivery Point

requested by Shipper, divided by Shipper's TMDQ,

expressed as a percentage; or

(ii) 5% in Contract Years 1-5; 7.5% in Contract Years 6-10;

10% in Contract Years 11-15

9.3.2 Subsequent Force Majeure Periods. During any subsequent period of

time that an incident of Force Majeure continues, Shipper's

Monthly Reservation Charge (if any) for each specific Day of such

continued incident of Force Majeure shall be credited by an amount

equal to (i) the applicable daily Demand or Reservation component

(if any) of Shipper's rate for service hereunder multiplied by

(ii) the Quantity of Gas tendered for Transportation by Shipper at

all Primary Receipt Points, up to Shipper's TMDQ, that Transporter

was unable to receive for Transportation. However, in no event

will Transporter be obligated to credit Reservation Charges

greater than the total Reservation Charges paid by Shipper during

the month.

9.4 Notice of Force Majeure. Notice of all claims of an incident of Force

Majeure by either Shipper or Transporter shall be given within twenty-

four (24) hours by the party so claiming an incident of Force Majeure to

the other party by telephone or other electronic transfer of information

to be further communicated in writing within five (5) Days with such

further notice containing at least the following information relative to

the claim of an incident of Force Majeure:

(i) date and time of the start of the specific incident of Force

Majeure

(ii) the specific cause of the incident of Force Majeure