Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Original Sheet No. 879 Original Sheet No. 879 : Effective

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 14 - QUALITY OF GAS (Continued)

14.5 Failure to Conform. (Continued)

concentration of the non-conforming component in shipper's

Gas deliveries to Transporter, shall be communicated to each

of the non-conforming shippers.

(3) Shipper shall reduce the non-conforming component to the

maximum allowable concentration in 14.5(b)(ii)(2) above by

either replacing nominated or existing Gas deliveries to

Transporter with Gas containing less of the non-conforming

component or by reducing nominations or deliveries of non-

conforming Gas until, inclusive of the reductions of non-

conforming components similarly required of any other non-

conforming shippers, the Composite Gas Stream is again

calculated not to exceed 93% of the requirements of Section

14.2 herein.

(4) Should Shipper fail to take adequate corrective action to

comply with Transporter's requirements, Transporter shall

have the right to curtail receipts from Shipper as described

in Section 14.5(a) above.

refuses to accept Gas tendered by Shipper because such Gas does

not conform to the specifications set forth herein, Shipper shall

not be relieved of its obligation to pay any Monthly Reservation

Charge provided for in this Agreement.

(d) 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 14.1 above, Shipper may refuse

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

entitle Shipper to a credit to Shipper's Monthly Reservation

Charge pursuant to Section 10.2; provided however, that if

Transporter accepts Gas from Shipper pursuant to Section 14.3