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. 881 First Revised Sheet No. 881 : Effective

Superseding: Original Sheet No. 881

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 15 - PRESSURE

15.1 Receipt Point Pressure.

15.1.1 Maximum Receipt Pressure. Shipper shall cause the Gas to be

tendered at each Receipt Point at a pressure sufficient to

enter Transporter's System against the pressure prevailing from

time to time at each Receipt Point. Provided, however, that

Shipper shall not be obligated to deliver, or cause to be

delivered, Gas to Transporter at a pressure at any Receipt

Point which is in excess of the Maximum Receipt Pressure

specified for such Receipt Point as set forth in Exhibit "A".

Transporter shall design, construct and make such modifications

to Transporter's System as may be necessary from time to time

during the term hereof, to enable Shipper's Gas delivered to

Transporter at such Maximum Receipt Pressure to enter

Transporter's System against the pressure prevailing at such

Receipt Point from time to time. If additional compression

facilities are required for such purpose, then the maximum fuel

reimbursement factor established in Section 12.3 hereof shall

be adjusted to reflect Shipper's pro rata share of the fuel

associated with any such additional compression.

15.1.2 Reservation Charge Reduction. In the event that Transporter is

unable to receive a portion of the Gas tendered by Shipper at

the Maximum Receipt Pressure at one or more Receipt Points (up

to Shipper's TMDQ) because the pressure in Transporter's System

exceeds such Maximum Receipt Pressure, then Shipper's Monthly

Reservation Charge (if any) for any given Month shall be

reduced in proportion to the volume of Gas tendered by Shipper

in such Month that Transporter is unable to transport for the

above-described reason; provided, however, that such reduction

shall not apply if Transporter is performing maintenance on

Transporter's System, subject to the limitations and

alternative credit provisions in Section 10.4.