Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 02/01/2006, Docket: RP06-160-000, Status: Effective

Third Revised Sheet No. 716 Third Revised Sheet No. 716 : Effective

Superseding: Second Revised Sheet No. 716




Kern River Firm Transportation Services





3.5 Discounted Recourse Rates:


(a) Transporter reserves the right to discount at any time the

Recourse Rates for any individual Shipper under any service

agreement without discounting any other Recourse Rates for that or

any other Shipper; provided, however, that such discounted

Recourse Rates will not be less than any applicable Minimum Rates

set forth on Sheet No. 5 of Transporter's effective tariff, or any

superseding tariff. Such discounted Recourse Rates may apply to

specific volumes of Gas (such as volumes above or below a certain

level or all volumes if volumes exceed a certain level), volumes

of Gas transported during specific time periods, and volumes of

Gas transported from specific receipt points and/or to specific

delivery points, or within other defined geographical areas. If

Transporter discounts any Recourse Rates to any Shipper,

Transporter will file with the FERC any required reports

reflecting such adjusted rates.