Pacific Interstate Offshore Company

Second Revised Volume No. 1

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

Original Sheet No. 11 Original Sheet No. 11 : Effective

RATE SCHEDULE FT-1

FIRM TRANSPORTATION SERVICE (cont'd)

6. REQUESTS FOR TRANSPORTATION (cont'd)

6.3 (1) (cont'd)

(v) If Shipper has an on-going business

relationship with Transporter, no

delinquent balances should be consistently

outstanding for natural gas transportation

services made previously by Transporter

and Shipper must have paid its account

during the past according to the

established terms and not made deductions

or withheld payment for claims not

authorized by contract.

(vi) Shipper shall confirm in writing that no

significant collection lawsuits or

judgments are outstanding which would

seriously reflect upon the business

entity's ability to remain solvent.

(2) If a Shipper fails to satisfy the credit

criteria, such Shipper may still obtain

transportation hereunder if it elects one of

the following options: (i) payment of an

advance deposit equal to three (3) months

service; (ii) an irrevocable letter of credit

in favor of Transporter drawn upon a bank

acceptable to Transporter; (iii) a security

interest in collateral provided by the Shipper

and found to be satisfactory to Transporter; or

(iv) guarantee, acceptable to Transporter, by a

person or another entity which does satisfy the

credit appraisal.

6.4 A request for Transportation shall not be deemed to

have been received and accepted by Transporter until

Transporter has received in writing the information

required or requested under Sections 6.2 and 6.3

herein.