Mojave Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

Fourth Revised Sheet No. 219B Fourth Revised Sheet No. 219B

Superseding: Third Revised Sheet No. 219B

GENERAL TERMS AND CONDITIONS

(Continued)

4. Requests for Service (Continued)

Prior to execution of a Transportation Service Agreement providing

for service under Rate Schedules FT-1, IT-1, and PAL, Shipper shall

be required to establish creditworthiness with Transporter.

Transporter shall not be required to execute a Transportation Service

Agreement providing for service under Rate Schedules FT-1, IT-1 or

PAL on behalf of any Shipper who fails to meet Transporter's

standards for creditworthiness or to initiate or continue service to

a Shipper who fails to meet Transporter's standards for

creditworthiness or to continue service to a Shipper who fails to pay

Transporter for transportation service as provided for in Shipper's

Transportation Service Agreement.

For purposes herein, the determination of Shipper's creditworthiness

shall be based upon: (a) a credit rating of investment grade,

defined as a rating of at least "BBB-" by Standard & Poor's

Corporation, or a rating of at least "Baa3" by Moody's Investors

Service, or (b) if Shipper is not rated by Standard & Poor's or

Moody's, an equivalent rating of investment grade as determined by

Transporter based on the financial rating methodology, criteria and

ratios for the industry of the prospective Shipper as published by

the above rating agencies from time to time, or (c) approval by the

lenders providing the financing for Transporter's pipeline

("Lenders"). In the event that Transporter determines the Shipper

does not have an equivalent rating of investment grade, Shipper may,

at its own expense, obtain a private rating from Standard & Poor's or

Moody's, or, as an alternative, request that an independent

accountant or an independent financial consultant, mutually

acceptable to Shipper and Transporter, prepare an equivalent

evaluation based on the financial rating methodology, criteria and

ratios for the industry of the prospective Shipper as published by

the above rating agencies from time to time.

If Shipper fails to establish creditworthiness when required to do

so, Shipper may still receive service under this rate schedule

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

Transportation Service Agreement a written guarantee in a form

satisfactory to Transporter and Transporter's Lenders from a third

party which is creditworthy as determined above, or (b) furnishes

other security acceptable to Transporter's Lenders.

To permit Transporter to conduct such review, any Shipper or

prospective Shipper under this Rate Schedule shall, upon request by

Transporter, render to Transporter complete audited financial

statements prepared in accordance with generally accepted accounting

principles or, for non-U.S.-based Shippers, prepared in accordance

with equivalent principles.