Southwest Gas Storage Company

First Revised Volume No. 1

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Effective Date: 12/15/1999, Docket: RP00- 58-000, Status: Effective

Original Sheet No. 106 Original Sheet No. 106 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

2. REQUESTS FOR SERVICE (Continued)

2.3 Credit Appraisal

(A) The firm storage service rendered hereunder (including

capacity release pursuant to Section 6) is contingent upon

Shipper satisfying a credit appraisal by Southwest. Such

credit appraisal shall be based upon the following

information and criteria:

(1) Shipper shall provide current financial statements,

annual reports, 10-K reports, filings with regulatory

agencies, a list of all corporate affiliates, parent

companies and subsidiaries, and any reports from credit

reporting and bond rating agencies which are available.

Southwest shall apply consistent evaluation practices to

determine the acceptability of the Shipper's overall

financial condition, working capital, and profitability

trends.

(2) Shipper shall provide a bank reference and at least two

trade references. The results of reference checks and

any credit reports submitted in Section 2.3(A)(1) must

show that Shipper's obligations are being paid on a

reasonably prompt basis.

(3) Shipper shall confirm that Shipper is not operating

under any chapter of the bankruptcy laws and is not

subject to liquidation or debt reduction procedures

under state laws, such as an assignment for the benefit

of creditors, or any informal creditors' committee

agreement. An exception can be made for a Shipper who

is a debtor in possession operating under Chapter XI of

the Federal Bankruptcy Act but only with adequate

assurance that the billing for storage service rendered

hereunder will be paid promptly pursuant to Section 12

as a cost of administration under the Federal Court's

jurisdiction.