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. 109 Original Sheet No. 109 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(5) If Prospective Customer has an on-going business

relationship with BLUEWATER, no delinquent balances

shall be outstanding for services BLUEWATER shall have

previously performed and Customer shall have paid its

account in the past according to the established terms

and not made deductions or withheld payment for claims

not authorized by contract;

 

(6) Prospective Customer shall confirm in writing that

no significant collection lawsuits or judgments are

outstanding which would seriously reflect upon the

business entity's ability to remain solvent;

 

(7) For prospective Customers that are state-regulated

local distribution companies, documentation provided by

each state regulatory commission (or equivalent

authority) having jurisdiction over the local

distribution company's rates establishing the existence

and effectiveness of an authorized gas cost recovery

mechanism which (x) provides for full recovery of both

gas commodity and transportation capacity costs and (y)

is afforded regulatory asset accounting treatment in

accordance with Generally Accepted Accounting

Principles;

 

(8) A Statement of prospective Customer's legal

composition and a statement of the length of time

Customer's business has been in operation; and

 

(9) Such other information as may be mutually agreed

to by BLUEWATER and prospective Customer.

 

(h) In the event prospective Customer cannot provide the

information specified in Section 3.3(g) above, it shall, if

applicable, provide that information for its parent company.

 

(i) BLUEWATER shall not be required to perform or to

continue service under any Rate Schedule on behalf of any Customer

or prospective Customer which is or has become insolvent or which,

at BLUEWATER's request, fails to demonstrate creditworthiness in

accordance with Section 3.3, and BLUEWATER may take such action as

is permitted in Section 28.2 of these General Terms and Conditions;

provided, however, that such Customer or prospective Customer may

receive service under any Rate Schedule if it provides Financial

Assurances pursuant to Section 31. For purposes of this Section

3.3(i), the insolvency of a Customer or prospective Customer shall

be conclusively demonstrated by the filing by Customer, or any

parent entity thereof or guarantor of Customer, of a voluntary

petition in bankruptcy or the entry of a decree or order by a court

having jurisdiction in the premises adjudging the Customer, or any

parent entity thereof or guarantor of Customer, bankrupt or

insolvent, or approving, as properly filed, a petition seeking

reorganization, arrangement, adjustment or composition of or in

respect of the Customer, or any parent entity thereof or guarantor

of Customer, under the U.S. Bankruptcy Code or any other applicable

federal or state