Chandeleur Pipe Line Company

Second Revised Volume No. 1

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Effective Date: 08/01/2002, Docket: RP00-320-001, Status: Effective

First Revised Sheet No. 57 First Revised Sheet No. 57 : Effective

Superseding: Original Sheet No. 57

GENERAL TERMS

AND CONDITIONS

 

17.0 CREDITWORTHINESS

 

17.1 Chandeleur shall not be required to perform or continue

service on behalf of any Shipper who is or has become

insolvent, or who, at Chandeleur's request, fails within

a reasonable time to demonstrate creditworthiness;

provided, however, Chandeleur shall continue service to

such Shipper if Shipper prepays for such service or

furnishes good and sufficient security (as determined by

Chandeleur in the exercise of reasonable discretion) in

an amount equal to the cost of performing the service

requested by Shipper for a three (3) month period.

 

Potential replacement Shippers who currently are not

Shippers on Chandeleur or are not currently included on

Chandeleur's firm or interruptible service request queue

and who believe there is a possibility they may bid for

released capacity on Chandeleur in the future may seek to

satisfy Chandeleur's creditworthiness requirements prior

to bidding for capacity and actually receiving service.

Upon notification by a releasing Shipper of a pre-

arranged replacement Shipper who has not met Chandeleur's

creditworthiness standard or a potential replacement

Shipper seeking to meet Chandeleur's creditworthiness

standard, Chandeleur will run a Dun & Bradstreet Credit

Report to establish potential replacement Shippers'

creditworthiness for up to 3 months of service. This

pre-qualification of creditworthiness will provide for a

more efficient bidding process and faster implementation

of capacity releases.

 

17.2 For the purpose of this section, the insolvency of a

Shipper shall be evidenced by the filing by Shipper or

any parent entity thereof (collectively referred to as

"Shipper") of a voluntary petition in bankruptcy or the

entry of a decree or order by a court having jurisdiction

of the premises adjudging Shipper bankrupt or insolvent,

or approving, as properly filed, a petition seeking

reorganization, arrangement, adjustment or composition of

or in respect of the Shipper under the Federal Bankruptcy

Act or any other applicable federal or state law, or

appointing a receiver, liquidator, assignee, trustee,

sequestrator (or other similar official) of the Shipper

or of any substantial part of its property, or the

ordering of the winding-up or liquidation of its affairs,

with said order or decree continuing unstayed and in

effect for a period of sixty (60) consecutive days.