Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 02/02/1998, Docket: GT98- 17-002, Status: Effective

Fourth Revised Sheet No. 72 Fourth Revised Sheet No. 72 : Effective

Superseding: Second Revised Sheet No. 72

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

18. OPERATING PROVISIONS (Continued)

18.3 (A) Credit-worthiness for Firm Transportation Service

(Continued)

(a) A guarantee of Shipper's financial performance in a

form satisfactory to PG&E GT-NW and for the term of

the Gas Transportation Agreement from a corporate

affiliate of the Shipper or a third party either

of which meets the credit-worthiness standard

discussed above.

(b) Other security acceptable to PG&E GT-NW's lenders.

18.3 (B) Credit-worthiness for Interruptible Transportation Service

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

interruptible transportation service under this FERC

Gas Tariff First Revised Volume No. 1-A on behalf of

any Shipper who is or has become insolvent or who, at

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

demonstrate credit-worthiness. Shipper's

credit-worthiness shall be determined by providing

proof of least two of the items listed below:

(a) A long-term bond or commercial paper rating from

Standard and Poors or Moody's equivalent to a "Ba"

or better, or a commercial paper rating from

Standard and Poors or Moody's equivalent to

Prime-3 or better.

(b) Audited financial statements for itself, or for

its parent company if it is a subsidiary which is

consolidated with its parent company and does not

issue stand-alone financial statements, for the

two preceding years showing good financial

strength.

(c) An estimated financial strength rating by Dun and

Bradstreet sufficient to cover the credit to be

extended and a corresponding Dun and Bradstreet

composite credit appraisal of "fair" or better.

(Continued)