Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 04/20/2009, Docket: RP09-466-006, Status: Effective

Sub Original Sheet No. 216 Sub Original Sheet No. 216

Superseding: Original Sheet No. 216

. GENERAL TERMS AND CONDITIONS .

(Continued)

29. ESTABLISHMENT AND MAINTENANCE OF CREDIT (Continued)

29.2 Long Term Firm Service.

If Shipper otherwise fails to establish creditworthiness as

provided herein, Shipper may still receive long term firm service

provided it either (a) furnishes and maintains for the term of the

Transportation Service Agreement a written guarantee in a form

satisfactory to Transporter from a third party that is

creditworthy as determined above, or (b) furnishes security as

required by Transporter's Current Lending Documents.

For purposes of this Section 29.2, "Transporter's Current Lending

Documents" means the Trust Indenture dated as of August 13, 2001,

among Kern River Funding Corporation, Kern River Gas Transmission

Company, as guarantor, and the trustee, as amended and

supplemented from time to time.

29.3 Short Term Firm, Interruptible and PAL Service.

If Shipper otherwise fails to establish creditworthiness as

provided herein, Shipper may still receive short term firm,

interruptible and/or PAL service to the extent it:

(a) prepays in advance each Month for one (1) Month service;

(b) provides a standby irrevocable letter of credit drawn upon

a bank acceptable to Transporter, in an amount equal to

Transporter's estimate of providing three (3) Months of the

service requested by Shipper;

(c) provides a security interest in collateral provided by the

Shipper that is satisfactory to Transporter; or

(d) provides a written guarantee in a form satisfactory to

Transporter from a third party that is creditworthy as

determined above.