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