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.