Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 05/01/2002, Docket: RP01-190-002, Status: Effective

First Revised Sheet No. 718 First Revised Sheet No. 718 : Effective

Superseding: Original Sheet No. 718



Kern River Firm Transportation Services





4.1 Scheduling and Dispatching.


4.1.1 Scheduling, nomination and dispatch of Shipper's gas volumes for

transportation hereunder shall be governed by Sections 10.1, 13.1

and 15.11(g) of the General Terms and Conditions of this tariff.


4.1.2 Limitation Upon Transporter's Daily Transportation Obligation.

Subject to the provisions of this Rate Schedule as to scheduling

and balancing, Transporter shall not be obligated to deliver to

Shipper on any Day a greater quantity of Gas, on a Thermally

Equivalent basis, up to Shipper's TMDQ, than it has received from

Shipper on such Day, reduced by any requisite fuel and loss



4.2 Balancing of Gas.


4.2.1 Daily Deliveries. It is recognized that receipts by Transporter

from Shipper and deliveries by Transporter to Shipper may vary

above or below the quantities scheduled on any Day due to

operating conditions affecting Shipper or Transporter. Shipper

and Transporter shall use every reasonable effort to minimize

departures from scheduled receipts and deliveries and to correct

any cumulative imbalances in receipts and deliveries as soon as

practicable. In any event, Transporter and Shipper shall

eliminate any cumulative imbalances at least once every 60 Days by

adjusting delivery and receipt volumes. Transporter shall provide

to Shipper the status of Shipper's imbalance account at least

monthly. Transporter shall have the right to suspend or reduce

service to Shipper to correct critical imbalances caused by or

contributed to by Shipper which threaten the operation or

integrity of its system including, without limitation, maintenance

of service to other shippers. Transporter will give reasonable

notice to Shipper of any such impending critical imbalance

situation, however, in the event of any emergency such notice

shall not be required. Transporter shall not be responsible for

eliminating any imbalances between Shipper and any third party.

Furthermore, Transporter shall not be obligated to adjust or