Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/01/2000, Docket: RP00-288-000, Status: Effective

Original Sheet No. 24 Original Sheet No. 24 : Effective

RATE SCHEDULE KRF-1

KERN RIVER FIRM TRANSPORTATION SERVICES

(Continued)

7. ESTABLISHMENT AND MAINTENANCE OF CREDIT (Continued)

7.2 Short Term. (Continued)

(3) to provide a security interest in collateral provided

by the Shipper found to be satisfactory to

Transporter; or

(4) to provide a guarantee by a person or another entity

which satisfies the credit appraisal.

Transporter'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 Transporter do not exceed such limit, no new

credit appraisal will be conducted when an existing contract

is amended or a request for a new contract is made; provided

that the Shipper's payment history with Transporter has been

satisfactory and there is no bona fide basis for questioning

a Shipper's creditworthiness.

8. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions contained in this FERC Gas Tariff are

applicable to this rate schedule and are hereby made a part hereof. Any

terms and conditions contained in Shipper's executed Transportation

Service Agreement which are not inconsistent with the terms and

conditions of this rate schedule, including the General Terms and

Conditions contained in this FERC Gas Tariff, will also be applicable to

service provided under this rate schedule. Shipper will provide

Transporter with such information as is needed to meet the requirements

placed on Transporter by regulation, rule, and/or order.