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

Second Revised Sheet No. 868 Second Revised Sheet No. 868 : Effective

Superseding: Sub First Revised Sheet No. 868

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 11 - RECEIPT AND DELIVERY POINTS

11.1 Receipt Points.

(a) Shipper shall tender Gas to Transporter and Transporter shall

receive Gas from Shipper at the Primary Receipt Point(s) and for

the Receipt Point Entitlements both designated in Exhibit "A" to

the Firm Transportation Service Agreement. The aggregate of

Shipper's Receipt Point Entitlements for all Primary Receipt

Point(s) shall not exceed one hundred fifty (150) percent of

Shipper's Demand Maximum Daily Quantity and the Receipt Point

Entitlements for any individual Primary Receipt Point shall not

exceed Shipper's Demand Maximum Daily Quantity. Shipper may add

Primary Receipt Points to its Transportation Service Agreement, or

increase or decrease the amount of Shipper's Receipt Point

Entitlements at any particular Primary Receipt Point, subject to

the availability of capacity; provided, however, that in the event

of any such increase Shipper must concurrently relinquish an

equivalent amount of its Receipt Point Entitlement at any one or

more of the Primary Receipt Points contained in its Transportation

Service Agreement. Exhibit "A" shall be amended as necessary to

reflect any changes in Shipper's utilization of its Primary

Receipt Points which may be agreed upon by the parties in writing.

In addition, Shipper may, subject to Article 10 of this Rate

Schedule, nominate and schedule Gas for Transportation from

Secondary Receipt Points.

(b) In the event Shipper temporarily releases any or all of its

Transportation rights to a Replacement Shipper under Article 5 of

this Rate Schedule and permits the Replacement Shipper to utilize

Primary Receipt Points in connection with the Release, Shipper

shall be required to relinquish, for the entire term of the

relevant Release, some portion or all of its Receipt Point

Entitlement at any one or more of its Primary Receipt Points in an

aggregate amount no less than the amount of the DMDQ released.

Following expiration of the term of any Release which is not a

permanent Release, Shipper shall be entitled to utilize the

Primary Receipt Points which the Replacement Shipper was entitled

to utilize at the time of expiration of the Release Term, up to

the amount of the Replacement Shipper's respective Receipt Point

Entitlement at each such point.

(c) In the event Shipper permanently releases only a portion of its

Transportation rights to a Replacement Shipper under Article 5 of

this Rate Schedule, Shipper's aggregate Receipt Point Entitlements

must be released by the same percentage as Shipper's DMDQ and

aggregate Delivery Point Entitlements are released.