K O Transmission Company

Original Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-339-000, Status: Effective

First Revised Sheet No. 037 First Revised Sheet No. 037 : Effective

Superseding: Original Sheet No. 037

GENERAL TERMS AND CONDITIONS (continued)

2. Request for Service (con't.)

changed in any manner material to creditworthiness and may update items that

have materially changed.

2.4 Advance Determination of Creditworthiness

A Requestor shall submit the data required in this Section at least fifteen

(15) business days in advance of bidding for or requesting new or increased

service for an advance determination of creditworthiness by Transporter.

2.5 Deficient Requests

Transporter shall promptly notify a Requestor whose request for service has been

rejected because of Requestor's failure to satisfy the provisions specified in

this Section. Such notice shall identify the deficiencies that must be corrected

in order to make a valid request to Transporter.

2.6 Material Changes

If any information provided by Requestor pursuant to this Section materially

changes, Requestor shall provide Transporter with prompt written notification of

such changes.

2.7 Denial of Requests

Transporter may reject any request for service from a Requestor that fails to

meet Transporter's creditworthiness requirements unless Requestor provides

assurance of payment as provided in Section 2.8 below. Grounds for rejection

shall include, but shall not be limited to, Requestor's failure (i) to show that

Requestor's obligations are being paid in a timely manner, or (ii) to provide

reasonable assurance that Requestor will be able to continue to pay its

obligations in the future.

2.8 Assurance of Payment

If Transporter denies a request for service and does not approve the placement

of Requestor's name on the Approved Bidders List due to a failure to satisfy

Transporter's creditworthiness requirements, Requestor may obtain service or be

placed on the Approved Bidders List if it provides Transporter with assurance of

payment in the manner set forth in Section 27 (Creditworthiness of Shipper) of

the General Terms and Conditions of this Tariff. If Requestor fails to tender

such assurance of payment within ten (10) days, or such longer time period

reasonably established by Transporter, Transporter may deny Requestor's request

for service or reject any bid submitted by Requestor.