Tuscarora Gas Transmission Company

First Revised Volume No. 1

Effective Date: 04/01/2009, Docket: RP09-08-000, Status: Effective

Original Sheet No. 77 Original Sheet No. 77

GENERAL TERMS AND CONDITIONS

3.8 Creditworthiness for Interruptible Transportation.

(a) An interruptible Shipper will be considered creditworthy, and

Transporter will extend credit, if one of the following conditions is

met:

(1) Shipper's long-term unsecured debt securities, at the time it enters

into a Transportation Service Agreement and throughout the term

thereof, are rated BB+ or better by Standard & Poor's or Ba1 by

Moody's Investor Service; or

(2) Shipper provides audited financial statements for itself, or for its

parent company if it is a subsidiary that is consolidated with its

parent company for reporting purposes and does not issue stand-alone

financial statements, for the two (2) preceding years that in

Transporter's opinion demonstrate adequate financial strength; or

(3) Transporter determines, in its sole discretion reasonably exercised,

that, based upon factors such as the quantity and character of service

requested and utilized, 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.

(b) If Shipper does not establish or maintain creditworthiness as described

above, or if Shipper's credit limit as determined by Transporter is

insufficient to cover Shipper's contractual obligations, Shipper may

receive interruptible transportation service under this FERC Gas Tariff

by providing one or more of the following credit alternatives:

(1) A cash security deposit up to the maximum amount of services that may

be provided in any three-month period under an interruptible

agreement. Such cash security deposit will remain in place to allow

continued service under Shipper's IT Agreement(s). Cash security

deposits will accrue interest at the actual interest rate earned by

Transporter. Interest will be paid by Transporter on an annual basis

each September 1 or at the time Shipper's deposit is returned due to

either a return to creditworthiness by Shipper or the expiration of

Shipper's Agreement(s); or

(2) A prepayment for service. Such prepayment will remain in place until

Shipper exhausts its prepaid balance by utilizing interruptible

transportation service. At the point Shipper's prepayment is

exhausted, Transporter may suspend further activity under an

interruptible agreement collateralized by a prepayment. Shipper will

not earn interest on prepayments.