Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 11/01/2004, Docket: RP04-619-000, Status: Effective

Second Revised Sheet No. 158 Second Revised Sheet No. 158 : Effective

Superseding: First Revised Sheet No. 158







15.10 Invoicing and Payment. (Continued)



The usage rate and any and all volumetric charges and

surcharges to be paid to Transporter by the Replacement

Shipper (respectively, the "Release Usage Rate" and "Release

Volumetric Surcharges") will be the maximum usage rate and

maximum volumetric charges and surcharges applicable to the

Governing Rate Schedule, as such rates, charges, and

surcharges may be revised from time to time (respectively,

the "Tariff Volumetric Rate" and "Tariff Usage

Surcharges"), unless otherwise agreed in writing by

Transporter and the Replacement Shipper prior to the date of

commencement of the Release Term.


c) Except in the case of a permanent release where Transporter

has agreed to relieve Releasing Shipper of future payment

liability pursuant to Section 15.10(a), if the Replacement

Shipper fails to pay all or any portion of any invoice from

Transporter by the date on which payment is due, Transporter

will send an invoice to the Releasing Shipper for all unpaid

amounts related to the Release Reservation Rate and the

Release Reservation Surcharges, up to the amount of the

reservation rate and reservation surcharges for which the

Releasing Shipper is responsible under the Releasing

Shipper's Service Agreement prior to any Releases thereunder

(the "Default Invoice"). The Default Invoice will include

the amount of any and all applicable interest charges and

penalties related to nonpayment by the Replacement Shipper

of all or any portion of the Release Reservation Rate and

the Release Reservation Surcharges which have accrued from