Keyspan LNG, LP (Alng)

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 01/27/2003, Docket: RP03-241-000, Status: Effective

Original Sheet No. 40 Original Sheet No. 40 : Effective

 

Joseph A. Vaszily, Vice President

 

GENERAL TERMS AND CONDITIONS

(continued)

 

3. CREDIT EVALUATION (continued)

 

(e) Customers with an ongoing business relationship with KLNG shall

have no delinquent balances outstanding for services made

previously by KLNG, and Customer must have paid its account

according to the established terms and not made deductions or

withheld payment for claims not authorized by contract.

 

(f) Customer shall confirm in writing that no significant collection

lawsuits or judgments are outstanding which would materially

affect Customer's ability to remain solvent as a business entity.

 

3.2 Alternatives to Satisfaction of Credit Criteria. Upon notification by

KLNG that Customer has failed to satisfy the credit criteria or

subsequently during the term of the service agreement no longer

satisfies the credit criteria, such Customer may still obtain credit

approval by KLNG if it elects to provide one of the following:

 

(a) an advance deposit;

 

(b) a standby irrevocable letter of credit;

 

(c) security interest in collateral found to be satisfactory to KLNG;

or

 

(d) a guarantee, acceptable to KLNG, by another person or entity which

satisfies credit appraisal.

 

Such advance deposit, standby irrevocable letter of credit, security

interest or guarantee should at all times equal the amount equal to

three months of storage service utilizing Customer's requested Storage

Capacity at the maximum applicable unit rate hereunder. If Customer's

credit standing ceases to meet KLNG's credit requirements during the

period of service, then KLNG has the right to require security or a

deposit as specified herein. If security or a deposit is not tendered

in a timely period as reasonably determined by KLNG, then KLNG is not

required to continue service. If Customer is unable to maintain credit

approval, the executed service agreement shall terminate as of the first

day of the month following written notice to Customer.