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. 891 Original Sheet No. 891 : Effective

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 20 - LIABILITY OF PARTIES AND INDEMNIFICATION

20.1 Liability Determined by Possession and Control. As between Shipper and

Transporter, Shipper shall be deemed to be in control and possession of,

and responsible for, all Gas tendered to Transporter at the Receipt

Point(s) prior to Transporter's receipt from Shipper, after which

Transporter shall be deemed to be in control and possession of, and

responsible for, such Gas until it is delivered to Shipper at the

Delivery Point(s) after which Shipper shall be deemed to be in control

and possession of, and responsible for, all such Gas delivered to

Shipper.

20.2 Transporter's Facilities Indemnification. Transporter shall assume

responsibility and liability for the installation, maintenance and

operation of its properties and equipment and shall indemnify and save

harmless Shipper from all liability and expense on account of any and

all losses, damages, claims or actions, including injury to or death of

persons, arising from any act or accident resulting from the

installation, presence, maintenance and operation of the property and

equipment of Transporter, except to the extent, if any, that such

liability or expense is caused by, or arises out of, the negligence or

willful misconduct of Shipper or its agents or employees. Transporter

shall have no obligation to odorize Gas delivered to Shipper, nor to

maintain any odorant level.

20.3 Shipper's Facilities Indemnification. Shipper shall assume

responsibility and liability for the installation, maintenance and

operation of its properties and equipment and shall indemnify and save

harmless Transporter from all liability and expense on account of any

and all losses, damages, claims or actions, including injury to or death

of persons, arising from any act or accident resulting from the

installation, presence, maintenance and operation of the property and

equipment of Shipper, except to the extent, if any, that such liability

or expense is caused by, or arises out of, the negligence or willful

misconduct of Transporter or its agents or employees. Shipper shall

have no obligation to odorize Gas delivered to Transporter, nor to

maintain any odorant level.