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.