Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 241 Original Sheet No. 241 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

affairs, with said order or decree continuing unstayed

and in effect for a period of sixty (60) consecutive

days.

For purposes herein the creditworthiness of Buyer or

Shipper shall be determined by Norte¤o upon its review

of Buyer's or Shipper's most recent financial

statement, annual report, or Form 10-K. Buyer or

Shipper must as a minimum, meet the following criteria

for purposes of this Section 10:

(a) Buyer or Shipper must not be operating under any

chapter of the bankruptcy laws, and must not be

subject to liquidation or debt reduction

procedures under state laws; and

(b) Buyer or Shipper must be able to provide Norte¤o

with at least one acceptable bank reference and

two acceptable trade references or an acceptable

report from a national credit bureau, which, upon

verification by Norte¤o, will demonstrate that

Buyer's or Shipper's obligations are being paid on

a current or reasonably prompt basis.

11. RECEIPT AND DELIVERY:

11.1 Sales Delivery - The delivery points for sales

service to Buyer shall be at the wellhead,

mainline receipt point, or any other point

upstream of Norte¤o's mainline receipt points as

set forth in the executed Service Agreement; and

as required by Part 284 of the Commission's

Regulations.

11.2 Pressure - Deliveries to Norte¤o and deliveries to

Buyer or Shipper shall be made by Buyer or Shipper

and Norte¤o respectively, at the point or points

where Norte¤o's facilities, or the facilities of

Norte¤o's agent, interconnect with Buyer or

Shipper's facilities at the delivery pressure

obligation at such point stated in the executed

Service Agreement.