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. 897 Original Sheet No. 897 : Effective

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 22 - MISCELLANEOUS (Continued)

22.11 Reservation of Processing Rights. (Continued)

of Transporter. Shipper hereby reserves the right at any time and from

time to time to process the Gas delivered to Transporter hereunder for

the extraction of substances contained therein, including but not

limited to, retrograde liquid hydrocarbons, liquefiable hydrocarbons and

concomitant materials (i.e., sulfur, carbon dioxide, nitrogen, helium,

etc.), herein called "Plant Products", and Transporter specifically

agrees not to have Shipper's Gas processed without Shipper's express

written consent. Shipper may process Gas hereunder individually,

jointly with others, or by assignment of such right to one or more

parties. Shipper reserves the right to process Gas hereunder: (i) in

the field prior to delivery to Transporter, (ii) at any point off of

Transporter's System, or (iii) at any mutually agreeable point on

Transporter's System downstream of a Receipt Point at a processing

plant, if any, located, or to be located on Transporter's System;

provided, however, any costs associated with such processing shall not

be borne by Transporter, unless Transporter otherwise agrees.

22.12 Choice of Law. The Firm Transportation Service Agreement shall be

construed in accordance with the laws of Utah, except to the extent that

such laws would refer any construction thereof or dispute arising

thereunder to the laws of another jurisdiction.

22.13 Singular and Plural. Unless otherwise provided herein, the singular

form of any noun shall include the plural form and the plural form shall

include the singular.