Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 06/28/2010, Docket: RP09-466-006, Status: Effective

1st Revised First Revised Sheet No. 217 1st Revised First Revised Sheet No. 217

Superseding: First Revised Sheet No. 217

. GENERAL TERMS AND CONDITIONS .

(Continued)

29. ESTABLISHMENT AND MAINTENANCE OF CREDIT (Continued)

29.4 Maintenance of Credit.

Transporter may determine that a Shipper is no longer creditworthy based

on the provisions of Section 29.1 or if, in the reasonable opinion of

Transporter, a Shipper (or its guarantor) suffers a material adverse

change in its financial condition such that Shipper's (or its

guarantor's) ability to perform its obligations to Transporter is

materially impaired. The determination of material adverse change shall

be based upon objective, publicly available information or a clearly

defined event, such as a default on indebtedness, a decrease in value of

publicly-traded debt, a restatement of financials, nonpayment, or a

decrease in market capitalization. Transporter will notify Shipper in

writing of the reason for the change in Shipper's creditworthiness

status, should a material adverse change in Shipper's financial

condition occur.

If Transporter determines that Shipper is no longer creditworthy,

Transporter may require security as set forth herein. Shipper shall

have at least five (5) business days from Transporter's written request

to provide advance payment for one Month of service. Shipper shall have

at least thirty (30) days to provide the additional security required

under Section 29.2 or 29.3, as applicable, to continue to receive

service. Failure to provide the necessary security may result in

suspension or permanent termination of service, provided that

Transporter shall provide Shipper with a minimum of five (5) days'

notice before service is suspended or thirty (30) days' notice to both

Shipper and the Commission before service is terminated. Transporter

will suspend a Shipper's reservation charges while that Shipper's

service is suspended. Notices to suspend and/or terminate service may be

provided on or after the date Transporter requests security.

Shipper may at any time request that Transporter reevaluate Shipper's

creditworthiness to determine whether the security requirements can be

eliminated.