Central New York Oil And Gas Company, LLC

Original Volume No. 1

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Effective Date: 12/01/2001, Docket: CP00- 61-001, Status: Effective

Original Sheet No. 102 Original Sheet No. 102 : Effective

 

GENERAL TERMS AND CONDITIONS (continued)

 

(i) deposits with Seller and

maintains, on account, an amount which

would be due for three (3) Months

service at the full contract quantities

set forth in the Service Agreement; or

 

(ii) furnishes good and

sufficient security, which may include

an acceptable standby letter of credit,

or monthly prepayment agreement or other

security as reasonably determined by

Seller, of a continuing nature and in an

amount equal to such amounts which would

be due for service. If such payment on

account or payment security is not

received within such fifteen (15) day

notice period, Seller may, without

waiving any rights or remedies it may

have, suspend further service for a

period of ten (10) days. If such

payment on account or a payment security

is not received within such ten (10) day

suspension period, then Seller shall no

longer be obligated to continue to

provide service to such Customer.

 

Seller shall not be required to

commence service, or subject to the following

provisions, to continue to provide service

and may terminate a Service Agreement with

any Customer under Rate Schedule FSS having a

term of more than one year if Customer, or

its guarantor, fails to maintain a long-term

debt rating issued by either Moody's

Investors Service, or Standard and Poor's

Corporation, or Customer's, or its

guarantor's, long-term debt rating issued by

Moody's Investors Service or Standard and

Poor's Corporation falls below a rating of at

least Baa3 according to Moody's Investors

Service or BBB- according to Standard &

Poor's Corporation; provided, however, that

any such Customer that is receiving service

shall continue to receive service for a

period of three (3) months during which

Customer shall have the ability to:

 

(1) attain minimum long-term debt ratings as

described above; or

 

(2) secure a guarantee by a

person with a minimum long-term debt

rating as described above, provided

further, if Customer should fail to meet

the requirements set forth within the

three (3) month period, Seller shall

have the right to market the capacity

underlying the Service Agreement(s) in

question to other customers meeting the

requirements as set forth herein.