Carolina Gas Transmission Corporation

Original Volume No. 1

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Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 125 Original Sheet No. 125 : Effective

 

(ii) Corporate or Other Acceptable Guaranty. An

irrevocable and unconditional guaranty obtained

from a Guarantor guaranteeing: (i) full and

prompt payment of all amounts payable by

Shipper, and (ii) performance by Shipper under

related Service Agreements, may provide an

acceptable form of collateral to Pipeline.

Guarantor must have, at a minimum, an

investment grade debt rating of "BBB minus" by

Standard & Poor’s or Fitch’s, or "Baa3" by

Moody’s. The guaranty must state the

identities of the "Guarantor", "Beneficiary

(Pipeline)", and "Obligor", and the

relationship between Guarantor and Shipper.

The guaranty must be duly authorized by

Guarantor, must be signed by an officer or

otherwise approved signer of Guarantor, and

must be accompanied by satisfactory

documentation that the person signing the

guaranty is duly authorized. A Shipper

supplying a guaranty must ensure that

Guarantor: (i) submits to Pipeline at least

annually a current rating agency report

promptly on its issuance, SEC Form 8-Ks

promptly on their issuance, and financial

reports if and as requested by Pipeline within

ten (10) days of such request, and (ii) informs

Pipeline in writing within ten (10) Business

Days of any material change in its financial

status. Guarantor’s failure to provide this

information may result in a determination by

Pipeline that Shipper is in default under one

(1) or more of the related Service Agreements.

If there is a material adverse change in the

financial condition of Guarantor, Pipeline may

require Shipper to provide another form of

acceptable collateral.