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. 870 Second Revised Sheet No. 870 : Effective

Superseding: Sub First Revised Sheet No. 870

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 11 - RECEIPT AND DELIVERY POINTS (Continued)

11.2 Delivery Points. (Continued)

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

up to the amount of the Replacement Shipper's respective Delivery

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 Delivery Point

Entitlements must be released by the same percentage as Shipper's

DMDQ and aggregate Receipt Point Entitlements are released.

11.3 Barometric Pressure. For each Primary Receipt Point and Primary

Delivery Point, the deemed barometric pressure, to be used for

measurement, engineering and operational purposes under this Rate

Schedule and the Firm Transportation Service Agreement, shall be

designated on Exhibit "A" to the Firm Transportation Service Agreement.

11.4 Measurement Facilities. Transporter shall be obligated to furnish,

install, own, maintain and operate such measuring equipment, devices,

materials and associated facilities as are necessary to add any

additional Primary Receipt or Delivery Points pursuant to Sections 11.1

and 11.2 and in accordance with Article 17 of this Rate Schedule. The

cost of furnishing and installing such measuring stations for each

additional Primary Receipt Point(s) and Primary Delivery Point(s) will

be borne by Transporter. Transporter may require, at its option, that

Shipper bear the full costs of furnishing and installing such measuring

stations.

11.5 Common Facilities. Receipt Points and Delivery Points shall include the

points on or adjacent to the Common Facilities at which Transporter has

the right to receive or to deliver gas, to the extent of Transporter's

rights to utilize such points.