Liberty Gas Storage, LLC

Original Volume No. 1

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Effective Date: 11/01/2007, Docket: RP07-715-000, Status: Effective

First Revised Sheet No. 153 First Revised Sheet No. 153 : Effective

Superseding: Original Sheet No. 153







32.1 (a) Liberty shall not be required to (i) execute a Storage Service Agreement providing for service

under the applicable Rate Schedule for any Customer who fails to meet Liberty's standards for creditworthiness,

or (ii) initiate service for a Customer who fails to meet Liberty's standards for creditworthiness, or (iii)

continue storage service for any Customer who is or has become insolvent or who, at Liberty's request, fails

within a reasonable period to demonstrate creditworthiness pursuant to Liberty's standards. Liberty shall apply

consistent evaluation practices to all similarly situated Customers to determine the Customer's financial

ability to satisfy the payment obligations due to Liberty over the term of the requested service agreement.


(b) For purposes herein, a Customer shall be deemed creditworthy if its senior unsecured debt

securities are rated at least "BBB-" by Standard & Poor's Corporation and "Baa3" by Moody's Investors Service,

Inc., provided that Customer shall be deemed creditworthy if Customer's senior unsecured debt securities (i) are

rated by only Standard & Poor's Corporation and such rating is at least "BBB-" or (ii) are rated by only Moody's

Investors Service, Inc. and such rating is at least "Baa3".


32.2 If Customer is unable to satisfy the requirement in Section 32(b), Liberty will, at Customer's request,

perform a creditworthiness review. As a part of this review, Liberty may require, either with the request for

service or at any future time as necessary for Liberty to conduct on-going credit evaluations of Customer, that

Customer provide Liberty with the following information to allow Liberty to determine Customer's

creditworthiness and the level of service, if any, that can be provided to Customer without the requirements

that Customer provide security for payment as provided in Section 32.3.


(a) Customer shall provide current financial statements (balance sheet, income statement and statement of

cash or cash flow), annual reports, 10-K reports or other filings with regulatory agencies which discuss

Customer's financial status; a list of all corporate affiliates, parent companies and subsidiaries; and any

reports from credit reporting and bond rating agencies which are available. Liberty shall determine the

acceptability of the Customer's overall financial condition. If audited financial statements are not available,

then Customer's Chief Financial Officer should provide attestation that the information shown in the unaudited

statement is true, correct and a fair representation of the Customer's financial condition.


(b) Customer shall provide a bank reference and at least two trade references. The results of reference

checks and any credit reports submitted in (a) above must show that Customer's obligations are being paid on a

prompt basis.


(c) Customer shall confirm in writing that Customer is not operating under any chapter of the bankruptcy

laws and is not subject to liquidation or debt reduction procedures under state laws, such as an assignment for

the benefit of creditors, or any informal creditors' committee agreement. An exception can be made for a

Customer who is a debtor in possession operating under Chapter 11 of the Federal Bankruptcy Act but only with

adequate assurance that the service billing will be paid promptly as a cost of administration under the federal

court's jurisdiction.


(d) Customer shall confirm in writing that Customer is not aware of any current or anticipated change in

business conditions which would cause a substantial deterioration in its financial condition, a condition of

insolvency, the inability to exist as an ongoing business entity, or the inability to pay timely the rates and

charges under its Service Agreement.


(e) Customers with an ongoing business relationship with Liberty shall have had no delinquent balances

outstanding during the previous twelve months for services rendered by Liberty, and during that period Customer

must have paid its account according to the established terms and not made deductions or withheld payment for

claims not authorized by contract.


(f) Customer shall confirm in writing that no significant collection lawsuits or judgments are outstanding

which could materially affect Customer's ability to remain solvent as a business entity.


(g) Customer shall promptly notify Liberty of any material change in its financial condition, which may

adversely affect its creditworthiness.