Steuben Gas Storage Company

Original Volume No. 1

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Effective Date: 06/27/1996, Docket: CP96- 35-002, Status: Effective

Original Sheet No. 153 Original Sheet No. 153 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(ii) furnishes good and sufficient security, which may

include an acceptable standby letter of credit, or

monthly prepayment agreement or other security as

reasonably determined by Seller, of a continuing

nature and in an amount equal to such amounts

which would be due for service. If such payment

on account or payment security is not received

within such fifteen (15) Day notice period, Seller

may, without waiving any rights or remedies it may

have, suspend further service for a period of ten

(10) Days.

If such payment on account or a payment security is not

received within such ten (10) Day suspension period, then

Seller shall no longer be obligated to continue to

provide service to such Customer.

Seller shall not be required to commence service, or subject

to the following provisions, to continue to provide service

and may terminate an Agreement with any Customer under Rate

Schedule FS having a term of more than one year if Customer,

or its guarantor, fails to maintain a long-term debt rating

issued by either Moody's Investors Service, or Standard and

Poor's Corporation, or Customer's, or its guarantor's,

long-term debt rating issued by Moody's Investors Service or

Standard and Poor's Corporation falls below a rating of at

least Baa according to Moody's Investors Service or BBB

according to Standard & Poor's Corporation; provided, however,

that any Customer or its guarantor that is not so rated by

either Moody's Investors Service or Standard and Poor's

Corporation must demonstrate to Seller its satisfactory

creditworthiness by meeting the following minimum criteria for

the last two fiscal years: 1) Pretax interest coverage of at

least 2.08 to 1, 2) Earnings before interest, depreciation and

amortization to Interest expense of 3.58 or better, 3) Funds

from operations to Debt of at least 21.4% and 4) Debt to

capitalization ratio of 55% or less. It is further provided

that any Customer that is receiving service shall continue to

receive service for a period of three (3) Months during which

Customer shall have the opportunity to:

(1) attain minimum long-term debt ratings as described

above; or

(2) secure a guarantee by a person with a minimum

long-term debt rating as described above; or