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. 892 Original Sheet No. 892 : Effective

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 20 - LIABILITY OF PARTIES AND INDEMNIFICATION (Continued)

20.4 Transporter's Liability. Transporter agrees to indemnify and hold

harmless Shipper, its officers, agents, and employees from any claim,

demand, or expense for loss, damage, or injury arising out of or in any

way connected with the transportation of Shipper's Gas after receipt

from Shipper at the Receipt Points through and including delivery to

Shipper at the Delivery Points, except in the case of willful misconduct

or gross negligence on the part of Shipper, its officers, agents, or

employees.

20.5 Shipper's Gas Indemnification. Shipper agrees to indemnify and hold

harmless Transporter, its officers, agents, and employees from any

claim, demand, or expense for loss, damage, or injury arising out of or

in any way connected with the quality, use, or condition of Gas after

delivery from Transporter's system for the account of Shipper at the

Delivery Points, except in the case of willful misconduct or gross

negligence on the part of the Transporter, its officer, agents, or

employees.