Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-567-000, Status: Effective

First Revised Sheet No. 475 First Revised Sheet No. 475

Superseding: Original Sheet No. 475

 

GENERAL TERMS AND CONDITIONS

(continued)

 

14. PAYMENTS (continued)

 

14.5 Security. Transporter shall not be required to perform or to

continue service under this Tariff on behalf of any Shipper who

is or has become insolvent or who, at Transporter's request, at

any time fails within a reasonable period to maintain and

demonstrate creditworthiness, including, without limitation, the

ability to pay all amounts invoiced but not paid because of a

claimed error pursuant to this Section 14; provided, however,

such Shipper may receive service under this Tariff if Shipper

provides a deposit for such service or otherwise furnishes good

and sufficient security, as determined by Transporter in its

reasonable discretion, which at all times shall be sufficient to

cover up to the amount which would be invoiced to Shipper if one

hundred percent (100%) of the Contract Demand, Maximum Contract

Quantity, Contract Delivery Demand and/or the requested or

effective quantities for storage services, as applicable, were

provided for service to Shipper during a period of up to six (6)

Service Months. For purposes of this Tariff, the insolvency of a

Shipper shall be evidenced by the filing of such Shipper or any

parent entity or guarantor thereof (for purposes of this section,

a reference to Shipper shall include any applicable parent entity

or guarantor) of a voluntary petition in bankruptcy or the entry

of a decree or order by a court having jurisdiction in the

premises adjudging Shipper a bankrupt or insolvent, or approving

as properly filed a petition seeking reorganization, arrangement,

adjustment or composition of or in respect of 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 Shipper