Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 315 Original Sheet No. 315

 

GENERAL TERMS AND CONDITIONS (Cont'd)

 

(e) Upon receipt from the Shipper of all credit information provided pursuant to the applicable

NAESB WGQ standards, the Transporter should notify the Shipper's authorized representative(s) that it has

received such information. The Transporter and the Shipper may mutually agree to waive the requirements of

this standard.

 

(f) The Shipper should designate up to two representatives who are authorized to receive notices

regarding the Shipper's creditworthiness, including requests for additional information, pursuant to the

applicable NAESB WGQ standards and should provide to the Transporter the Internet e-mail addresses of such

representatives prior to the initiation of service. Written requests and responses should be provided via

Internet E-mail, unless otherwise agreed to by the parties. The obligation of the Transporter to provide

creditworthiness notifications is waived until the above requirement has been met. The Shipper should manage

internal distribution of any creditworthiness notices that are received.

 

The Transporter should designate on its Internet website or in written notices to the Shipper,

the Internet e-mail addresses of up to two representatives who are authorized to receive notices regarding the

Shipper's creditworthiness. The Shipper's obligation to provide confirmation to receipt is met by sending such

confirmation of such representatives, and the Transporter should manage internal distribution of any such

confirmations.

 

(g) At any time after the Shipper is determined to be non-creditworthy by the Transporter, the

Shipper may initiate a creditworthiness re-evaluation by the Transporter. As part of the Shipper's re-

evaluation request, the Shipper should either update or confirm in writing the prior information provided to

the Transporter related to the Shipper's creditworthiness. Such update should include any event(s) that the

Shipper believes could lead to a material change in the Shipper's creditworthiness.

 

(h) After a Transporter's receipt of a Shipper's request for re-evaluation, including all required

information pursuant to NAESB WGQ Standard 0.3.8 ("Shipper's Request"), within five (5) Business Days, the

Transporter should provide a written response to the Shipper's Request. Such written response should include

either a determination of creditworthiness status, clearly stating the reason(s) for the Transporter's

decision, or an explanation supporting a future date by which a re-evaluation determination will be made. In

no event should such re-evaluation determination exceed twenty (20) Business Days from the date of the receipt

of the Shipper's Request unless specified in the Transporter's tariff or if the parties mutually agree to some

later date.

 

(i) In complying with the creditworthiness related notifications pursuant to the applicable NAESB

WGQ standards, the Shipper(s) and the Transporter may mutually agree to other forms of communication in lieu

of Internet E-mail notification.

 

(j) If a Shipper becomes insolvent or looses its creditworthiness status after service commences on

Transporter's system, Transporter will notify Shipper via e-mail and facsimile stating that the Shipper has

lost its creditworthiness status. If Shipper is a Replacement Shipper, simultaneous notice will also be sent

to the Releasing Shipper via e-mail and facsimile. Within ten (10) days of that notice, Transporter will

provide the non-creditworthy Shipper a detailed written explanation of the reasons for the loss of

creditworthiness and provide a recourse for Shipper to challenge that determination.

 

(k) Regardless of whether Shipper is insolvent, has lost its creditworthiness status or does not

desire to continue service with Transporter, Shipper shall continue to be liable for all charges due under its

Service Agreement and associated rate schedule. If the Shipper desires to continue service with Transporter,

Transporter will require the Shipper to pay any outstanding balances due Transporter for services rendered and

provide adequate credit assurances in accordance with Section 9.6(c) above.

 

(l) If Shipper fails to provide the credit assurance within the specified time period, Transporter

may (i) immediately suspend service to Shipper, and/or (ii) terminate Shipper's Service Agreement upon at least

thirty (30) days written notice to Shipper, Releasing Shipper, if any, and the Commission that it will

terminate service to Shipper if Shipper fails to pay the outstanding balance and/or provide the required credit

assurance. Any termination shall be without waiver of any rights Transporter may otherwise have under any and

all Service Agreements with Shipper including, but not limited to, the right to sue Shipper for unmitigated

damages resulting from Shipper's breach of contract. If Transporter terminates the service of a Replacement

Shipper, Transporter shall provide simultaneous notice to the Replacement Shipper and Releasing Shipper via e-

mail and facsimile.