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. 154 Original Sheet No. 154 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

B. To permit Transporter to conduct a creditworthiness review, a Shipper

shall, upon request by Transporter, render to Transporter:

 

(i) complete and current financial statements, including annual reports, 10K

reports or other filings with regulatory agencies, prepared in accordance with

generally accepted accounting principles, or for non U.S.-based Shippers,

prepared in accordance with equivalent principles;

 

(ii) a list of corporate affiliates, parent companies and subsidiaries; and

 

(iii) any credit reports from credit reporting agencies which are available.

 

In addition to the establishment of creditworthiness:

 

(i) Shipper must not be operating under any chapter of the bankruptcy laws

and must not be 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 Shipper who is

a debtor in possession operating under Chapter XI of the Federal Bankruptcy

Act, but only with adequate assurances satisfactory to Transporter that the

billing will be paid promptly as cost of administration under the federal

court's jurisdiction;

 

(ii) Shipper should not be subject to the uncertainty of pending liquidation

or regulatory proceedings in state or federal courts which could cause a

substantial deterioration in its financial condition, which could cause a

condition of insolvency or the ability to exist as an ongoing business entity;

 

(iii) If Shipper has an ongoing business relationship with Transporter, no

delinquent balances should be consistently outstanding for transportation

services made previously by Transporter, and Shipper must have paid its

account in the past according to the credit terms and contract provisions and

not made deductions or withheld payment for claims not authorized by contract;

and

 

(iv) No significant collection, lawsuits or judgments are outstanding which

would seriously reflect upon the Shipper's ability to remain solvent.