Garden Banks Gas Pipeline, LLC

Original Volume No. 1

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Effective Date: 02/23/2006, Docket: RP06- 94-002, Status: Effective

Second Revised Sheet No. 140 Second Revised Sheet No. 140 : Effective

Superseding: First Revised Sheet No. 140

 

GENERAL TERMS AND CONDITIONS

 

34. CREDITWORTHINESS

 

In evaluating requests for service and for certain

other purposes under this Tariff, Transporter will

perform a credit appraisal of Shipper.

 

(a) Such a credit appraisal shall be performed in

accordance with the following criteria:

 

(1) Transporter may require Shipper to provide

current financial statements, annual

reports, 10-K or other reports to regulatory

agencies, a list of corporate affiliates,

parents or subsidiaries, or any reports from

credit reporting agencies which are

available. Transporter shall apply

consistent evaluation practices to determine

the acceptability of the Shipper's overall

financial condition, working capital, and

profitability trends.

 

(2) A bank reference and two trade references must

be provided by Shipper. The results of reference

checks must show that Shipper's obligations are

being paid on a reasonably prompt basis.

 

(3) In the event Shipper cannot provide the above

information, Shipper shall, if applicable, provide

that information for its parent company.

 

(4) 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 creditors, or

any informal creditors' committee agreement.

An exception can be made for a Shipper who

is a debtor in possession operating under

Chapter XI of the Federal Bankruptcy Act but

only with adequate assurances that billing

hereunder will be paid promptly as a cost of

administration under the federal court's

jurisdiction.

 

(5) Shipper must not be subject to the

uncertainty of pending litigation which

could cause a substantial deterioration in

its financial condition, which

could cause a condition of insolvency, or

which could jeopardize the ability of the

Shipper to exist as an ongoing business entity.