Kern River Gas Transmission Company

Second Revised Volume No. 1

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

First Revised Sheet No. 873 First Revised Sheet No. 873 : Effective

Superseding: Original Sheet No. 873

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 13 - OPERATING PROCEDURES

13.1 Notice. Transporter shall give Shipper a minimum of ten (10) Days prior

written notice of the projected In-Service Date to enable Shipper to

provide Transporter its initial nominations pursuant to this Article 13.

13.2 Initial Nominations. Within ten (10) Days after Shipper's receipt of

Transporter's notice pursuant to Section 13.1 herein, and at least five

(5) Days prior to the first Day of each month thereafter during the term

of the Firm Transportation Service Agreement, Shipper shall provide

Transporter with a written or other mutually agreed upon transmitted

schedule indicating its best estimate of Shipper's volumes of Gas to be

tendered to Transporter each Day during the succeeding month and the

corresponding allocation of those Gas volumes at each Receipt Point and

Delivery Point.

13.3 Delivery Requirements. Subject to the provisions of this Rate Schedule

as to scheduling and balancing, Transporter shall not be obligated to

deliver to Shipper on any Day a greater quantity of Gas, on a Thermally

Equivalent basis, up to Shipper's TMDQ, than it has received from

Shipper on such Day reduced by any requisite reimbursement for Fuel Gas

Volumes and L&U Volumes, as provided in Article 12 hereof.

13.4 Shipper's Obligations. It shall be Shipper's obligation to make any

necessary arrangement with other parties for tender of Shipper's Gas to

Transporter at the Receipt Point(s) and for receipt of Shipper's Gas

after transportation at the Delivery Point(s). Shipper shall be

obligated in such arrangements to require dispatching and operating

coordination with Transporter and to provide Transporter, at

Transporter's request, access to appropriate records.

13.5 Shipper's Estimates. Upon request of Transporter, Shipper shall, no

more frequently than once per calendar quarter, submit its best estimate

of the subsequent year's annual volume of Gas to be transported

hereunder, stated on a monthly basis. Any such best estimates provided

under this Section 13.5 shall not supplant the scheduling and

dispatching of volumes as provided in Sections 13.1 and 13.2 above, and

Section 13.1 of the General Terms and Conditions of Transporter's

Tariff.