Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Original Sheet No. 880 Original Sheet No. 880 : Effective

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 14 - QUALITY OF GAS (Continued)

14.5 Failure to Conform. (Continued)

above, or Shipper fails to comply with its obligations under Section

14.5 above, 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.

14.6 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.

14.7 Shipper Indemnification. If Transporter receives Gas from Shipper which

fails to conform to the specifications of Section 14.2 above, (or

Section 14.3 if applicable) above, 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.

14.8 Transporter Indemnification. If Transporter delivers Gas to Shipper

which fails to conform to the specifications of Section 14.1 above,

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

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

Shipper knowingly and willingly accepts such Gas.