Tuscarora Gas Transmission Company

Original Volume No. 1

Effective Date: 12/01/1995, Docket: CP93-685-003, Status: Effective

Original Sheet No. 40 Original Sheet No. 40 : Effective

GENERAL TERMS AND CONDITIONS

(d) For a Shipper requesting service pursuant to the FT Rate

Schedule, the Shipper provides a guarantee or other form of security

to secure payment of an amount equal to the sum of the Reservation

Charge applicable to the proposed transportation service for a 12

month period and the Commodity Charge applicable to the proposed

transportation service (assuming 100 percent load factor usage) for

a three month period, such guarantee or other security to be provided

by an entity which meets the creditworthiness standards set forth in

(a) above; or

(e) For a Shipper requesting service pursuant to the IT Rate

Schedule, the Shipper provides a guarantee or other form of security

to secure payment of an amount equal to the Commodity Charge

applicable to the proposed transportation service multiplied by the

Maximum Transportation Quantity requested for a three month period,

such guarantee or other security to be provided by an entity which

meets the creditworthiness standards set forth in (a) above; or

(f) Transporter determines, in its sole discretion reasonably

exercised, that, based upon factors such as the quantity and

character of service requested, Shipper's credit history with other

providers of natural gas service, and any other factors that a

reasonable party in Transporter's position might consider, Shipper

represents a reasonable credit risk.

3.6 Commencement and Continuation of Service Subject to Creditworthiness.

Transporter shall not be required to commence service on behalf of

any Shipper who is insolvent unless the Shipper prepays or provides

letters of credit or guarantees as provided in Sections 3.5(b)

through (e) above. Transporter shall not be required to continue

service to any person who has become insolvent (except where that

term is used in reference to a Shipper against whom an involuntary

petition in bankruptcy under 11 U.S.C. 303 has been filed, but as

to whom no order for relief has been entered), unless the Shipper

provides adequate assurance of payment within 20 days of an event of

insolvency, as that term is used in, and in the form prescribed by,

11 U.S.C. 366, whether or not an order for relief has been entered

under 11 U.S.C. 301 or 303 and whether or not the Bankruptcy Act

of 1978 applies to the Shipper.

For purposes of this Section 3, the insolvency of a Shipper

shall be evidenced by any one or more of the following:

(i) the publication or release of any financial statement

showing current assets to be less than current liabilities;