Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 02/02/1998, Docket: GT98- 17-000, Status: Effective

Second Revised Sheet No. 70A Second Revised Sheet No. 70A : Effective

Superseding: First Revised Sheet No. 70A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

18. OPERATING PROVISIONS (Continued)

18.3 Credit-worthiness

(A) Credit-worthiness for Firm Transportation Service

(1) PG&E GT-NW shall not be required to perform or to

continue transportation service under this FERC Gas

Tariff First Revised Volume 1-A on behalf of any

Shipper who is or has become insolvent or who, after

PG&E GT-NW's request, fails within a reasonable

period to establish or confirm credit-worthiness.

Shippers shall provide, initially and on a continuing

basis, financial statements, evidence of debt and/or

credit ratings, and other such information as is

reasonably requested by PG&E GT-NW to establish or

confirm Shipper's qualification for service. Credit

limits will be established based on the level of

requested service and Shipper credit-worthiness as

established by the following:

(a) Credit-worthiness must be evidenced by at

least a long term bond (or other senior debt)

rating of BBB or an equivalent rating.

Such rating may be obtained in one of three

ways:

(i) The rating will be determined by

Standard and Poors or another

recognized U.S. or Canadian debt rating

service;

(ii) If Shipper's debt is not rated by a

recognized debt rating service, an

equivalent rating as determined by

PG&E GT-NW, based on the financial rating

methodology, criteria and ratios for

the industry of the Shipper as

published by the above rating agencies

from time to time. In general, such

equivalent rating will be based on the

audited financial statements for the

Shipper's two most recent fiscal years,

all interim reports, and any other

relevant information;

(Continued)