Norteño Pipeline Company

First Revised Volume No. 1

Effective Date: 04/01/1996, Docket: CP96- 81-007, Status: Effective

Original Sheet No. 240 Original Sheet No. 240 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

conditional upon the payment of any amount

ultimately found due upon such bill after a final

determination which may be reached either by

agreement or judgment of the courts, as may be the

case, then Norte¤o shall not be entitled to

suspend further delivery of gas for reason of

nonpayment unless and until default be made in the

conditions of such bond.

9.3 Extension of Time of Payment - If mailing of a

bill by Norte¤o is delayed after the twentieth day

of the month, then the time of payment shall be

extended by one (1) day for each day that the

mailing is delayed unless Buyer or Shipper is

responsible for such delay.

10. CREDITWORTHINESS:

Norte¤o shall not be required to perform or, subject to

the receipt of any necessary regulatory authorization,

to continue service on behalf of any Buyer or Shipper

who is or has become insolvent or who, at Norte¤o's

request, fails within a reasonable period to

demonstrate creditworthiness, provided, however, such

Buyer or Shipper may receive service if it prepays all

charges for such service or furnishes good and

sufficient security, as determined by Norte¤o in its

reasonable discretion, in an amount up to the cost of

performing the service requested by Buyer or Shipper

for a three month period. For purposes herein, the

insolvency of a Buyer or Shipper shall be evidenced by

the filing by Buyer or Shipper or any parent entity

thereof (hereinafter collectively referred to as "the

Buyer or Shipper") of a voluntary petition in

bankruptcy or the entry of a decree or order by a court

having jurisdiction in the premises adjudging the Buyer

or Shipper bankrupt or insolvent, or approving, as

properly filed, a petition seeking reorganization,

arrangement, adjustment or composition of or in respect

of the Buyer or Shipper under the Federal Bankruptcy

Act or any other applicable federal or state law, or

appointing a receiver, liquidator, assignee, trustee,

sequestrator (or other similar official) of the Buyer

or Shipper or of any substantial part of its property,

or the ordering of the winding-up or liquidation of its