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TWP Pipeline LLC
FERC GAS TARIFF
SECOND REVISED VOLUME NO. 1

SECTION 7.7
CREDITWORTHINESS
VERSION 3.0.0

GENERAL TERMS AND CONDITIONS


    
                    a)  For Shippers under Rate Schedule FT – the sum of the 
                        reservation charge times, Shipper's MDQ applicable to 
                        the proposed service for three (3) month period; or
    
                    b)  For Shippers taking service under a Negotiated Rate that 
                        does not include a reservation charge, or for Shippers 
                        under Rate Schedule IT – an amount equal to the commodity 
                        charges applicable to the proposed service for a three 
                        (3) month period; and 
    
                    c)  Shipper shall provide the security specified in Sections 
                        7.7.3.2(a) and 7.7.3.2(b), as applicable, for the period 
                        there stated and shall continue to provide security for as 
                        long thereafter as Shipper fails to otherwise satisfy 
                        Transporter's creditworthiness standards; or
				
                3.  Shipper provides a guarantee of financial performance in 
                    a form satisfactory to Transporter and for the term of the 
                    Transportation Agreement from a corporate affiliate of the 
                    Shipper or a third party, either of which meets the 
                    creditworthiness standards set forth in this section; or
    
                4.  Shipper provides some other security or assurance of 
                    creditworthiness, which in Transporter's judgment is 
                    adequate for the service.  Transporter shall apply this 
                    provision in a manner that is not unduly discriminatory.
    
        7.7.4.  Other Creditworthiness Requirements – Shipper must also meet 
                the following criteria in order to be deemed creditworthy for 
                purposes of this section:
    
                1.  Shipper must not be operating under any chapter of the 
                    bankruptcy laws and must not be subject to liquidation or 
                    debt reduction procedures under state laws, such as an 
                    assignment for the benefit of the creditors, or any informal 
                    creditors' committee assignment.  An exception can be made 
                    for a Shipper who is debtor in possession operating under 
                    Chapter XI of the Federal Bankruptcy Act but only with 
                    adequate assurances that the bills will be paid promptly 
                    as a cost of administration under the federal court's 
                    jurisdiction;    
                    
                2.  Shipper must not be subject to pending liquidation or 
                    regulatory proceedings in state or federal courts that 
                    could cause a substantial deterioration in its financial 
                    condition or that could cause a condition of insolvency 
                    or adversely affect its ability to exist as an on-going 
                    business entity; and
    
                3.  Shipper must have no significant outstanding collection 
                    lawsuits or judgments that would jeopardize Shipper's 
                    ability to remain solvent.

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