Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 10/19/2006, Docket: RP06-596-001, Status: Effective

First Revised Sheet No. 172A First Revised Sheet No. 172A : Effective

Superseding: Original Sheet No. 172A

GENERAL TERMS AND CONDITIONS (Continued)

 

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

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

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

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

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

 

(h) After 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, Transporter should provide a written response to 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 Shipper’s Request unless specified in 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, Shipper and 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 9.5(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.

 

9.7 Requests for service which do not include all of the above-referenced information and the

information required by Section 3 shall be deemed null and void.

 

9.8 If a Shipper has multiple Service Agreements with Transporter and defaults on one Service Agreement,

Transporter may deem a default by Shipper on that one Service Agreement as a loss of creditworthiness on any

other Service Agreement the Shipper has with Transporter; provided, however, this provision shall not affect

amounts disputed by Shipper in good faith. This Section 9.8 shall apply solely to the Shipper that is the

Service Agreement holder.

 

9.9 Transporter intends that section 9.5(b)(4)(iv) above shall be read in harmony, and not in conflict,

with the Bankruptcy Code.

 

9.10 If Transporter has terminated service to Shipper as a result of Shipper’s loss of creditworthiness

or default, Transporter shall have the right to assert any liens or other interests, consistent with

applicable law, against any gas Shipper may have remaining on Transporter's system.