Dominion South Pipeline Co., LP

Original Volume No. 1

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Effective Date: 12/16/2005, Docket: CP05- 77-001, Status: Effective

Original Sheet No. 1018 Original Sheet No. 1018 : Effective

 

 

GENERAL TERMS AND CONDITIONS

CREDITWORTHINESS

 

6.2.A Evaluation Criteria (Cont.)

 

rated by S&P or Moody's may use its parent's rating if a guarantee acceptable to

Pipeline is provided. If the Customer has multiple service agreements with Pipeline

the total of all such service agreements shall be considered in determining

creditworthiness.

 

B. If a Customer is determined to be not-creditworthy, upon request by the Customer,

Pipeline shall provide the Customer a written explanation of its determination within

five (5) days of such determination.

 

6.3 If Customer has an ongoing business relationship with Pipeline, no uncontested delinquent

balances should be outstanding for bills previously rendered by Pipeline and Customer

must have paid its past due accounts according to the established terms and only made

deductions or withheld payment for claims authorized by the Customer's Service Agreement

or this Tariff.

 

6.4 Customer shall furnish Pipeline at least annually, and at such other time as is requested

by Pipeline, updated credit information as specified in GT&C Section 6.1 for the purpose

of enabling Pipeline to perform an updated credit appraisal. Pipeline may request such

information at any time if Pipeline is not reasonably satisfied with Customer's

creditworthiness or ability to pay based on information available to Pipeline at that

time. Pipeline may re-evaluate Customer's creditworthiness at any time, including, but

not limited to the following circumstances: the insolvency of Customer, the lowering of

Customer's credit rating, an adverse change in Customer's payment practices, a

reorganization of Customer's business structure, an assignment of Customer's contracts,

or a request by Customer for increased service.

 

6.5 In the event a Customer becomes insolvent or loses its creditworthiness status subsequent

to the commencement of service on Pipeline's system. Pipeline will notify Customer via e-

mail and facsimile stating that the Customer has lost its creditworthiness status. If

Customer is a Replacement Shipper, simultaneous notice will also be sent to the Releasing

Shipper via e-mail and facsimile. Within 10 days of such notice, Pipeline will provide

the non-creditworthy Customer a detailed written explanation of the reasons for such loss

of creditworthiness within 10 days of the Customer's request for such information and

provide a recourse for Customer to challenge such determination. Regardless of whether

Customer is insolvent, has lost its creditworthiness status or does not desire to continue

service with Pipeline, Customer shall continue to be liable for all charges due under its

service agreement and associated rate schedule. If the Customer desires to continue

service with Pipeline, Pipeline will require the Customer to pay any outstanding balances

due Pipeline for services rendered and provide adequate credit assurance in one of the

forms set forth below. The credit assurance elected must equal the value of three (3)

months of payments under Customer's service agreement(s) with Pipeline, with one (1)

months' payment to be provided to Pipeline within five (5) Business Days from the day

Pipeline notifies the Customer that Customer has lost its creditworthiness status, and the

remainder of the payments, an amount necessary to equal the value of three (3) months of

payments, to be provided within thirty (30) days from the day Pipeline notified the

Customer that the customer has lost its creditworthiness status. The credit assurance may

take one of the following forms, at Customer's election: