Columbia Gas Transmission LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 04/22/2009, Docket: RP09-468-000, Status: Effective

First Revised Sheet No. 312 First Revised Sheet No. 312

Superseding: Original Sheet No. 312

 

GENERAL TERMS AND CONDITIONS (Cont'd)

 

 

(iii) Results of bank and trade reference checks and credit reports must demonstrate

that a Shipper is paying its obligations in a timely manner.

 

 

(iv) Shipper is not operating under any chapter of the Bankruptcy Code and is not

subject to liquidation or debt reduction procedures under State Laws. Transporter will make an

exception for a Shipper who is a debtor in possession operating under Chapter XI of the Federal

Bankruptcy Act, if Transporter is adequately assured that the service billing will be paid promptly

as a cost of administration under the Federal Court's jurisdiction.

 

(v) Whether Shipper is subject to any lawsuits or judgments outstanding which would

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

 

(vi) Whether Shipper has any delinquent balances outstanding for services provided

previously by Transporter and whether Shipper has paid its account balances according to the terms

established in its Service Agreements and whether any deductions or payments were withheld for claims

not authorized by the Service Agreements.

 

(vii) Any other information obtained that is relevant to Shipper's current and future

financial strength.

 

(c) Transporter may require adequate assurance of payment for any service under this Tariff

requested by an insolvent or uncreditworthy Shipper. Such a Shipper may receive or continue to receive

service if it provides adequate assurance of payment for service. Adequate credit assurance will be

calculated as follows: (i) For firm service, including, FSS, FSS-M, FTS, NTS, NTS-S, OPT-30, OPT-60 and SST

services, the credit assurance elected must include an advance payment equal to the value of one (1) month of

demand charges under Shipper's Service Agreement(s) with Transporter, to be provided within five (5) business

days from the day Transporter notifies the Shipper that Shipper did not qualify for or has lost its

creditworthiness status, and an additional full two (2) months of demand charges to be provided as collateral

held for security within thirty (30) days from the day Transporter notified the Shipper that the Shipper has

not qualified for or has lost its creditworthiness status; (ii) For all other services provided pursuant to

the Tariff, the credit assurance elected must include an advance payment equal to the value of one (1) month

of the highest usage under Shipper's Service Agreement(s) with Transporter, to be provided within five (5)

business days from the day Transporter notifies the Shipper that Shipper did not qualify for or has lost its

creditworthiness status, and an additional two (2) highest months of estimated usage during the term of the

Service Agreement(s)to be provided as collateral held for security within thirty (30) days from the day

Transporter notified the Shipper that the Shipper has not qualified for or has lost its creditworthiness

status. For a new Shipper adequate credit assurance will be based on the three (3) highest months of

estimated usage during the term of the Service Agreement and for an existing Shipper, adequate credit

assurance will be based upon the highest three (3) months of activity for all of Shipper's active service

agreements during the previous twelve months.

 

Adequate assurance of payment may include:

 

(1) a cash deposit with Transporter of collateral held for security, provided that such

deposit may be applied by Transporter to satisfy a delinquent account;

 

(2) an irrevocable letter of credit that is both from a creditworthy financial institution

and in a form deemed acceptable in Transporter's sole and reasonable discretion;

 

(3) a guarantee that is both from a creditworthy entity and in a form deemed acceptable in

Transporter's sole and reasonable discretion; or

 

(4) a grant to Transporter of a security interest in collateral, the value of which is

mutually agreed upon by Transporter and Shipper.