Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 03/01/2008, Docket: RP08-177-000, Status: Effective

First Revised Sheet No. 874 First Revised Sheet No. 874 : Effective

Superseding: Original Sheet No. 874

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 14 - QUALITY OF GAS

14.1 Transporter and Shipper are subject to Section 4, Quality, of the

General Terms and Conditions in Transporter's FERC Gas Tariff, as

revised from time to time, and the following additional provisions shown

below:

(a) Reservation Charge Credit. In the event that Gas tendered to

Shipper by Transporter at any Delivery Point hereunder fails to

meet the specification of Section 4.1 of the General Terms and

Conditions in Transporter's Gas Tariff, Shipper may refuse to

accept such Gas. Refusal to accept such Gas by Shipper shall

entitle Shipper to a credit to Shipper's Reservation Charge

pursuant to Section 10.2 of the Agreement; provided however, that

if Transporter accepts Gas from Shipper pursuant to Section 4.3

of the General Terms and Conditions in Transporter's Gas Tariff,

or Shipper fails to comply with its obligations under Section 4.5

of the General Terms and Conditions in Transporter's Gas Tariff,

then Shipper may not refuse to accept such Gas at the Delivery

Points and shall not receive a credit to Shipper's Monthly

Reservation Charge for such Gas.

(b) Notice of Total Heating Value Testing. The testing party shall

give the non-testing party notice of the time of any test or Total

Heating Value determination sufficiently in advance of test or

determination so that the non-testing party may conveniently have

its representative present. The non-testing party shall respond

in writing or by telecopy to the testing party if the non-testing

party intends to witness any test or Total Heating Value

determination, to inspect any equipment used, to obtain all

relevant results, and to request a retest or redetermination. In

the event a retest or redetermination is requested and the

results, for the questioned portion thereof, vary less than two

(2) percent from the previous test, the retesting Party may

recover from the requesting Party the actual costs of performing

such retest or redetermination.

which fails to conform to the specifications of Section 4.2 (or

Section 4.3 if applicable) of the General Terms and Conditions in

Transporter's Gas Tariff, as revised from time to time, Shipper

shall indemnify Transporter for any injury, damage, loss, or

liability caused by the receipt of such Gas, except to the extent

Transporter knowingly and willingly receives such Gas.