Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/01/2000, Docket: RP00-288-000, Status: Effective

Original Sheet No. 878 Original Sheet No. 878 : Effective

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 14 - QUALITY OF GAS (Continued)

14.5 Failure to Conform. (Continued)

(b) Notwithstanding the foregoing, however, in the event the

provisions of Section 14.3 are in effect, the following procedures

shall apply:

(i) When the calculated quality of the Composite Gas Stream

approaches 90% of the allowable maximums for those Gas

components whose specifications are subject to blending,

then Transporter shall notify all shippers whose Gas does

not conform with Section 14.2.

(ii) When the calculated quality of the Composite Gas Stream

equals or exceeds 95% of the allowable maximums for those

Gas components subject to blending, Transporter shall

immediately notify all shippers whose Gas does not conform,

that Transporter will commence curtailing receipt of their

Gas in the following manner:

(1) Transporter shall determine which Gas nominations or

receipts do not conform with Section 14.2. For each

shipper, whose Gas nominations or deliveries to

Transporter do not conform with Section 14.2,

Transporter shall identify the quantity of the Gas

component that is in excess of the limits set forth in

Section 14.2, compute a total there of for all such

shippers, and calculate the percentage of said total

for each such shipper.

(2) The calculated percentage shall be used to determine

the quantity of non-conforming component that each of

the non-conforming shippers must eliminate from its

Gas nominations and/or receipts, in order to bring

said Composite Gas Stream back to within 93% of the

quality specification described in Section 14.2. The

required reduction of the non-conforming component, as

well as the newly calculated maximum allowable