Discovery Gas Transmission LLC

Original Volume No. 1

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Effective Date: 11/10/1997, Docket: CP96-712-002, Status: Effective

Original Sheet No. 164 Original Sheet No. 164 : Effective

11.10 PREQUALIFICATION OF CREDITWORTHINESS - All parties

desiring to bid on Firm capacity offered by a Releasing

Shipper and all prearranged Replacement Shippers must

meet Transporter's creditworthiness requirements prior

to bidding on capacity. A bidder's creditworthiness will

be assessed in accordance with the terms of Section 10

of the General Terms and Conditions, which may require

up to five (5) Business Days to complete. If a bidder

does not qualify under Transporter's creditworthiness

standards, the bidder shall either provide a letter of

credit in a satisfactory form and from a financial

institution acceptable to Transporter, a guaranty from a

party satisfying Transporter's creditworthiness

standards, or a cash deposit equal to the lesser of (i)

the maximum charges (including reservation charge, usage

charge and surcharges) payable for the term of the

release, or (ii) the maximum charges (including

reservation charge, usage charge and surcharges) payable

for the first three (3) full Months of the release. A

party that does not qualify as a creditworthy bidder is

ineligible to bid on capacity. After Transporter has

determined a bidder creditworthy and eligible to bid,

Transporter will issue a bidder prequalification number

to the bidder. Once a bidder is issued a bidder

prequalification number, it is not necessary for that

bidder to resubmit credit information for

prequalification except as requested by Transporter. In

the case of releases not subject to bidding, the

prearranged Replacement Shipper must prequalify at least

five (5) Business Days prior to Transporter's nomination

deadline for Transportation using the Released Capacity.

In all other respects, the terms and conditions

applicable to bidders also apply to the prearranged

Replacement Shippers who have not otherwise complied

with the above requirements.