Southwest Gas Storage Company

First Revised Volume No. 1

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

Original Sheet No. 107 Original Sheet No. 107 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

2. REQUESTS FOR SERVICE (Continued)

(4) Shipper shall confirm in writing that Shipper is not

subject to uncertainty in any pending liquidation or

regulatory proceedings in state or Federal courts which

could cause a substantial deterioration in its financial

condition, which could cause a condition of insolvency,

or the ability to exist as an on-going business entity.

(5) If Shipper has an on-going business relationship with

Southwest, no delinquent balances should be consistently

outstanding for natural gas storage services made

previously by Southwest and Shipper must have paid its

account during the past according to the established

terms and not made deductions or withheld payment for

claims not authorized by contract.

(6) Shipper shall confirm in writing that no significant

collection lawsuits or judgments are outstanding which

would seriously reflect upon the business entity's

ability to remain solvent.

(B) If a Shipper fails to satisfy the credit criteria, such

Shipper may still obtain storage hereunder if it elects one

of the following options: (1) payment of an advance deposit

equal to three (3) months service; (2) a standby irrevocable

letter of credit drawn on a bank acceptable to Southwest;

(3) a security interest in collateral provided by Shipper

found to be satisfactory to Southwest; or (4) a guarantee,

acceptable to Southwest, by a person or another entity which

does satisfy the credit appraisal.

2.4 A Request for storage shall not be deemed to have been received

and accepted by Southwest until Southwest has received in writing

the information required or requested under Sections 2.2 and 2.3

herein. If Southwest requests additional information or

assurances in accordance with this Section, and such information

is provided within seven (7) days of such request, Shipper's

Request for storage will be deemed to have been received when the

information set forth in Section 2.2 was received. Otherwise

Shipper's Request for storage will be deemed to have been received

when such additional information or assurances actually were

received in writing by Southwest.