Cheniere Creole Trail Pipeline, L.P.

Original Volume No. 1

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Effective Date: 04/28/2008, Docket: RP08-137-000, Status: Effective

Original Sheet No. 153 Original Sheet No. 153 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

17. CREDITWORTHINESS

 

A. Transporter shall not be required to:

 

(i) execute a Transportation Service Agreement providing for service under

the applicable Rate Schedule for any Shipper who fails to meet Transporter's

standards for creditworthiness, or

 

(ii) initiate service for a Shipper who fails to meet Transporter's standards

for creditworthiness, or

 

(iii) continue transportation service for any Shipper who is or has become

insolvent or who, at Transporter's request, fails within a reasonable period

to demonstrate creditworthiness pursuant to Transporter's standards.

 

For purposes herein, the determination of Shipper's creditworthiness shall be

based upon:

 

(i) a credit rating of investment grade, defined as a rating of at least

"BBB-" by Standard & Poor's Corporation, or a rating of at least "Baa3" by

Moody's Investors Service, Inc. or

 

(ii) if Shipper is not rated by Standard & Poor's or Moody's financial rating

methodology, criteria and ratios which are generally acceptable in the natural

gas industry. In the event that Transporter determines that Shipper does not

have an acceptable rating as set forth above, Shipper may, at its own expense,

obtain a private rating from Standard & Poor's or Moody's, or as an

alternative, request that an independent accountant or an independent

financial consultant, mutually acceptable to Shipper and Transporter, prepare

an equivalent evaluation based on the financial rating methodology, criteria

and ratios generally acceptable in the natural gas industry as published by

the above rating agencies from time to time or

 

(iii) other factors such as the willingness of shipper to provide a corporate

guarantee from an entity acceptable to Transporter.