Pacific Gas Transmission Company

First Revised Volume No. 1-A

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

Second Revised Sheet No. 74 Second Revised Sheet No. 74 : Effective

Superseding: First Revised Sheet No. 74

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

18. OPERATING PROVISIONS (Continued)

18.3 (B) Credit-Worthiness for Interruptible Transportation

Service (Continued)

(b) No later than three (3) business days

(settlement date) prior to commencement of

delivery month, Shipper shall pay to PG&E GT-NW

and PG&E GT-NW shall have received from Shipper

lawful money of the United States in an amount

equal to the prepayment amount provided to

Shipper by PG&E GT-NW described above.

(c) On or before the twentieth (20th) day

following delivery month, PG&E GT-NW shall

provide statement to Shipper detailing the

transportation service provided during the

delivery month. The statement will reconcile

the amount prepaid in accordance with the

monthly estimation, credit to Shipper, if

applicable. Any such credit will be deducted

from the prepayment for the following month.

Should the Shipper elect not to receive

transportation services for the following

month, Shipper shall so notify PG&E GT-NW in

writing; PG&E GT-NW will issue a check to the

Shipper within seven (7) business days

following receipt by PG&E GT-NW of such notice.

18.3 (C) Credit-worthiness for Firm and Interruptible

Transportation Service

For purposes of this FERC Gas Tariff First Revised Volume

No. 1-A the insolvency of a Shipper shall be evidenced by

the filing by such Shipper or any parent entity thereof

(hereinafter collectively referred in this paragraph to

as "the Shipper") of a voluntary petition in bankruptcy

or the entry of a decree or order by a court having

jurisdiction in the premises adjudging the Shipper as

bankrupt or insolvent, or approving as properly filed a

petition seeking reorganization, arrangement, adjustment

or composition of or in respect of the Shipper under the

Federal Bankruptcy Act or any Act or any other applicable

federal or state law, or appointing a receiver,

liquidator, assignee, trustee, sequestrator (or other

similar official) of the Shipper

(Continued)