Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 04/13/2007, Docket: RP07-348-000, Status: Effective

Second Revised Sheet No. 171A Second Revised Sheet No. 171A : Effective

Superseding: First Revised Sheet No. 171A

GENERAL TERMS AND CONDITIONS (Continued)

 

(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 FTS-1 or FTS-2 transportation service, 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.

 

Unless otherwise agreed, the credit assurance must at all times maintain a value specified above equal to the

highest estimated charges during the term of the Service Agreements. Any deposit held by Transporter pursuant

to Section 9.5 shall accrue simple interest at the Federal Funds Rate. Upon Shipper’s request, Transporter

will remit the balance of the interest to Shipper within thirty days, provided, however, that Transporter shall

not be required to remit interest to Shipper more often than every thirty days.