Pacific Interstate Offshore Company

Second Revised Volume No. 1

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Effective Date: 01/01/1994, Docket: RS92- 73-001, Status: Effective

Original Sheet No. 10 Original Sheet No. 10 : Effective

RATE SCHEDULE FT-1

FIRM TRANSPORTATION SERVICE (cont'd)

6. REQUESTS FOR TRANSPORTATION (cont'd)

6.3 (1) (cont'd)

(i) (cont'd)

and subsidiaries, and any reports from

credit reporting agencies which are

available. Transporter shall apply

consistent evaluation practices to determine

the acceptability of the Shipper's overall

financial condition, and working capital.

(ii) Shipper shall provide a bank reference and

at least two trade references. The results

of reference checks and any credit reports

submitted in 6.3, (1), (i) must show that

Shipper's obligations are being paid on a

reasonably prompt basis.

(iii) Shipper shall confirm that Shipper is not

operating under any chapter of the

bankruptcy laws and is not subject to

liquidation or debt reduction procedures

under state laws, such as an assignment for

the benefit of creditors, or any informal

creditors' committee agreement. An

exception can be made for a Shipper who is a

debtor-in-possession operating under Chapter

XI of the Federal Bankruptcy Act but only

with adequate assurance that the

transportation billing will be paid promptly

as a cost of administration under the

federal court's jurisdiction.

(iv) Shipper shall confirm in writing that

Shipper is not subject to any pending

liquidation or regulatory proceedings in

state or federal courts which could cause a

substantial deterioration in its financial

condition, which could cause a condition of

insolvency, or the inability to exist as an

on-going business entity.