T.W. Phillips Pipeline Corp.

Original Volume No. 1

Effective Date: 01/01/2010, Docket: RP10-141-000, Status: Effective

Original Sheet No. 39 Original Sheet No. 39

GENERAL TERMS AND CONDITIONS

(Continued)

6.10.2. Reservation of Capacity for Expansion Projects – Transporter may reserve

for a future expansion project any currently available unsubscribed capa-

city or capacity to become available at some future date, provided such

capacity is not subject to a Right of First Refusal (“ROFR”). Transpor-

ter may reserve capacity only for a future expansion project for which an

open season has been held or will be held within one (1) year of the date

Transporter posts such capacity as being reserved. Capacity may be reser-

ved for up to one (1) year prior to Transporter filing for certificate

approval for the expansion project, and thereafter until such expansion

is placed into service. Transporter shall, on a limited-term basis up to

the in-service date of the expansion project, make generally available

any capacity reserved under this section.

7. CREDITWORTHINESS

7.1. General – Transporter shall not be required to (a) execute a FT or IT Agreement

providing for service under the applicable Rate Schedule for any Shipper who fails

to meet Transporter’s standards for creditworthiness, or (b) initiate service for

a Shipper who fails to meet Transporter’s standards for creditworthiness, or (c)

continue service for any Shipper who is or has become non-creditworthy or who, at

Transporter’s request, fails within a reasonable period to demonstrate credit-

worthiness pursuant to Transporter’s standards. If Shipper is found to be non-

creditworthy, Transporter will, upon request, inform Shipper in writing as to the

reasons Shipper has been deemed non-creditworthy.

7.2. Credit Appraisal Information – Transporter shall perform a credit appraisal, if

applicable, by utilizing any or all of the following information which Shipper

shall furnish to Transporter:

7.2.1. A copy of Shipper’s most recent audited financial statements;

7.2.2. A copy of Shipper’s most recent twelve (12) month audited financial state-

ments or Annual Report and, if applicable, SEC 10-K form;

7.2.3. A list of Shipper’s affiliates, including parent and subsidiaries, if

applicable;