Bluewater Gas Storage, LLC

Original Volume No. 1

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Effective Date: 12/01/2006, Docket: CP06-351-001, Status: Effective

Original Sheet No. 108 Original Sheet No. 108 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

as defined in Section 31 of these General Terms and Conditions, or

if the prospective Customer satisfies BLUEWATER's credit appraisal

criteria based on an evaluation of the material provided by

prospective Customer pursuant to this Section. If BLUEWATER

concludes that a prospective Customer is not creditworthy, BLUEWATER

shall provide written notice to the prospective Customer within ten

(10) days after that determination is made. If requested by the

prospective Customer, BLUEWATER will provide a written explanation

of the basis for its determination within five (5) days of such

request. A prospective Customer may challenge BLUEWATER's

determination by providing a written rebuttal in accordance with

Section 3.3(j)(6) of these General Terms and Conditions. BLUEWATER

shall respond to such a rebuttal in writing within five (5) business

days in accordance with Section 3.3(j)(7). Any reevaluation of

credit by BLUEWATER in response to such a rebuttal by a prospective

Customer shall be based on the creditworthiness criteria set forth

in this Section.

 

(1) Prospective Customer shall provide current audited

financial statements, annual reports, 10-K reports,

interim financial statements with attestation by the

Chief Financial Officer (or equivalent) that such

statements are a true, correct and fair representation

of financial condition prepared in accordance with

Generally Accepted Accounting Principles and other

filings with regulatory agencies which discuss the

prospective Customer's financial status, a list of all

corporate affiliates, parent companies and

subsidiaries, and any reports from credit reporting and

bond rating agencies which are available;

 

(2) Prospective Customer shall provide a bank reference and

at least two trade references. The results of reference

checks and any credit reports must show that the

prospective Customer's obligations are being paid on a

reasonably prompt basis;

 

(3) Prospective Customer shall confirm in writing that it

is not operating under any chapter of the bankruptcy

laws and is not subject to liquidation or debt

reduction procedures under state laws, such as an

assignment for the benefit of creditors, or any

informal creditors' committee agreement. An exception

can be made for a prospective Customer that is a debtor

in possession operating under Chapter XI of the U.S.

Bankruptcy Code but only with adequate assurance that

the service billing will be paid promptly as a cost of

administration under the bankruptcy court's

jurisdiction;

 

(4) Prospective Customer shall confirm in writing that

it is not aware of any change in business conditions

which would cause a substantial deterioration in its

financial condition, a condition of insolvency or the

inability to exist as an ongoing business entity;