American Midstream (AlaTenn), LLC

Fifth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-493-000, Status: Effective

Original Sheet No. 162B Original Sheet No. 162B

 

GENERAL TERMS AND CONDITIONS (continued)

(4) If Shipper has an ongoing business relationship with Transporter or any of

its affiliates, no

delinquent balances may be consistently outstanding for Transportation Services

rendered

previously to

Shipper and Shipper must have paid its account during the past according to the

established

terms and

not made deductions or withheld payment for claims, absent the posting of a

surety bond

pending

resolution of the disputed amount, unless authorized by contract.

(5) No significant collection lawsuits or judgments are outstanding which would

seriously reflect

upon

the business entity's ability to remain solvent.

(6) AlaTenn shall not be required to perform or to continue to perform service

under the

applicable

rate schedules on behalf of any Shipper who is or has become insolvent, or who

fails to satisfy

the

above credit criteria. However, such Shipper may still obtain service hereunder if

it elects one of

the

following options:

(a) Payment in advance for three (3) months' service.

(b) A standby irrevocable letter of credit drawn upon a bank acceptable to

AlaTenn;

(c) Security interest in collateral provided by the Shipper found to be

satisfactory to AlaTenn;

or

(d) Guarantee by a person or another entity which does satisfy the credit

appraisal.

(7) For the purpose herein, the insolvency of a Shipper shall be evidenced by

the filing by

Shipper or

any parent entity thereof (hereinafter collectively referred 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 bankrupt or insolvent. Insolvency, for the purposes herein, shall also

include approval

by any

such court of a petition seeking reorganization, arrangement, adjustment or

composition of or in

respect

of the Shipper under the Federal Bankruptcy Act or any other applicable federal

or state law, or

appointing a receiver, liquidator, assignee, trustee, sequestrator (or other similar

official) of the

Shipper

or of any substantial part of its property, or the ordering of the winding-up or

liquidation of its

affairs