Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 10/19/2006, Docket: RP06-596-000, Status: Effective

Fourth Revised Sheet No. 172 Fourth Revised Sheet No. 172 : Effective

Superseding: Third Revised Sheet No. 172

GENERAL TERMS AND CONDITIONS (Continued)

 

 

9.6 Loss of Creditworthiness

 

(a) Transporter may at any time re-evaluate the creditworthiness of Shipper and demand adequate

assurance of payment or additional adequate assurances of payment if Transporter determines that Shipper has

in any respect become uncreditworthy. Circumstances under which Transporter may re-evaluate Shipper's

creditworthiness include, but are not limited to, a filing by Shipper for bankruptcy or a submission to

bankruptcy or similar federal or state proceedings, an adverse change in Shipper's payment practices, a

reorganization of Shipper's business structure, an assignment of Shipper's Service Agreements, or a request by

Shipper for increased service. If Transporter, following such a re-evaluation, makes an adverse preliminary

creditworthiness determination, and Shipper is current in its payments to Transporter and otherwise has a good

credit history with Transporter, Shipper will be given notice of such adverse determination and be allowed 10

days to submit data demonstrating its continued creditworthiness before Transporter will make a final

determination of creditworthiness and, if adverse, demand adequate assurance of payment. Transporter may at

any time withdraw or revise its demand for adequate assurance of payment or extend its due date.

 

 

(b) If the Transporter requests additional information to be used for credit evaluation after

the initiation of service, the Transporter, contemporaneous with the request, should provide its reason(s) for

requesting the additional information to the Shipper and designate to whom the response should be sent. The

Transporter and the Shipper may mutually agree to waive the requirements of this standard.

 

(c) Upon receipt of either an initial or follow-up request from the Transporter for information

to be used for creditworthiness evaluation, the Shipper’s authorized representative(s) should acknowledge

receipt of the Transporter’s request. The Transporter and the Shipper may mutually agree to waive the

requirements of this standard.

 

(d) The Shipper’s authorized representative(s) should respond to the Transporter’s request for

credit information, as allowed by the Transporter’s tariff, on or before the due date specified in the

request. The Shipper should provide all the credit information requested by the Transporter or provide the

reason(s) why any of the requested information was not provided.

 

(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 of receipt is met

by sending such confirmation to such representatives, and the Transporter should manage internal distribution

of any such confirmations.