Blue Lake Gas Storage Company

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 08/01/1993, Docket: RS92- 93-001, Status: Effective

Original Sheet No. 151 Original Sheet No. 151 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

11.5 Creditworthiness. Seller shall not be required to commence

service or, subject to the following provisions, to continue

to provide service and may terminate a Agreement with any

Customer under Rate Schedule FS with a primary term of one

year or less and Service Agreements under Rate Schedule IS,

if:

 

(1) Customer is or has become insolvent;

 

(2) Customer has applied for bankruptcy under Chapter

11 of the Bankruptcy Code, or which is subject to

similar proceedings under State or Federal law; or

 

(3) Customer, when requested by Seller to demonstrate

creditworthiness, fails to do so in Seller's

reasonable judgement, in light of previous payment

experience and changes thereto and the prudent

credit analysis of information available; provided,

however, that any such Customer that is receiving

service shall continue to receive service for a

period of fifteen (15) Days after written notice by

Seller of any such circumstance, and shall continue

thereafter to receive service if, within such

fifteen (15) Day notice period, such Customer:

 

(i) deposits with Seller and maintains, on account,

an amount which would be due for three (3)

Months service at the full contract quantities

set forth in the Service Agreement; or

 

(ii)

furnishes good and sufficient security, which

may include an acceptable standby letter of

credit, or monthly prepayment agreement or

other security as reasonably determined by

Seller, of a continuing nature and in an amount

equal to such amounts which would be due for

service. If such payment on account or payment

security is not received within such fifteen

(15) Day notice period, Seller may, without

waiving any rights or remedies it may have,

suspend further service for a period of ten

(10) Days.