Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 05/01/2002, Docket: RP01-190-002, Status: Effective

First Revised Sheet No. 866 First Revised Sheet No. 866 : Effective

Superseding: Original Sheet No. 866

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 10 - INTERRUPTIONS OF SERVICE (Continued)

10.2 Monthly Reservation Charge Credit. (Continued)

D = Quantities of Gas (Dth) actually delivered by Transporter to

Shipper at all Delivery Point(s)

E = total quantity of Gas (Dth) tendered for Transportation by

Shipper to Transporter at all Receipt Point(s), up to

Shipper's TMDQ.

However, in no event will Transporter be obligated to credit Reservation

Charges greater than the total Reservation Charges paid by Shipper

during the month.

10.3 Inability to Deliver. Pursuant to this Rate Schedule, if, for reasons

other than Force Majeure, Transporter is unable on any Day to deliver to

Shipper at the Delivery Point(s), a Quantity of Gas Thermally Equivalent

to the Quantity of Gas tendered for Transportation by Shipper at the

Receipt Point(s), up to Shipper's Transportation Maximum Daily Quantity,

and such inability is a result of Transporter testing, altering,

modifying, enlarging, or repairing any facility or property comprising a

part of, or appurtenant to, Transporter's System, then, except as

provided in Section 10.4, the provisions of Section 10.2 shall apply.