Tuscarora Gas Transmission Company

First Revised Volume No. 1

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

Original Sheet No. 78 Original Sheet No. 78

GENERAL TERMS AND CONDITIONS

3. REQUESTS FOR SERVICE/CREDIT EVALUATIONS (Continued)

3.8 Creditworthiness for Interruptible Transportation (continued)

(b)(Continued)

(3) A letter of credit. Shipper may post a letter of credit in a

form acceptable to Transporter. For interruptible service, the

amount of the letter of credit must be up to the maximum amount

of the services that may be provided in any three-month period

under an interruptible agreement. Such letter of credit must be

issued by a commercial bank or financial institution located in

the United States whose long-term unsecured debt securities are

rated A or better by Standard & Poor's, A or better by Dominion

Bond Rating Service, or A2 or better by Moody's Investors

Service; or

(4) A guarantee from a corporate affiliate or a third party in an

amount up to the maximum amount of interruptible services that

may be provided in any three-month period and in a form

satisfactory to Transporter. For such Shippers, the credit

limit will be based upon the financials of the guarantor. If

during the term of service the guarantor does not meet the

creditworthiness standards discussed above, then Transporter may

request additional alternatives if Transporter agrees to release

the original guarantor of all obligations at the time the

Shipper provides the additional assurances; or

(5) Any other security mutually agreed upon by Shipper and

Transporter. Such other security shall be accepted on a non-

discriminatory basis.

3.9 Creditworthiness for Parking and Lending Services.

The standards for interruptible transportation service apply to

parking and lending service. For lending service, however, the

security requirement under the cash and letter of credit options

includes an amount to adequately account for the value of the gas

being lent. The amount of security necessary to collateralize lent

gas will be up to Shipper's maximum quantity times the average annual

"Malin" price, as reported in Gas Daily's Price Survey, for the

preceding 12-month period ended October 31. Transporter shall have no

obligation to lend any quantity of gas beyond amounts for which

Transporter holds security.