Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-413-000, Status: Effective

Original Sheet No. 158A Original Sheet No. 158A : Effective

GENERAL TERMS AND CONDITIONS

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(b) If a Shipper fails to satisfy the credit criteria,

such Shipper may still obtain service hereunder if it elects one of

the following options:

(1) Payment in advance for three (3) months'

service;

(2) A standby irrevocable letter of credit drawn

upon a bank acceptable to Horizon;

(3) Security interest in collateral provided by

the Shipper found to be satisfactory to Horizon; or

(4) Guarantee by a person or another entity which

does satisfy the credit appraisal.

(c) Horizon's credit appraisal procedures involve the

establishment of dollar credit limits on a standardized,

nondiscriminatory basis. To the extent that a Shipper's accounts with

Horizon do not exceed such limit, and Shipper has met all

creditworthiness requirements as determined in periodic credit reviews

by Horizon, which reviews may be conducted on at least an annual

basis, no new credit appraisals shall be required when an existing

Agreement is amended or a request for a new Agreement is made,

provided that Shipper's payment history has been satisfactory and

there is no bona fide basis for questioning Shipper's

creditworthiness.

13.2 In order to obtain an Agreement under Rate Schedule FTS,

a Shipper must sign a consent and agreement, in a form acceptable to

Horizon, to pay all charges under the Agreement to the agent

designated by Horizon's lenders in the event the Shipper is notified

that an event of default has occurred under Horizon's loan agreement.