Discovery Gas Transmission LLC
Original Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 11/10/1997, Docket: CP96-712-002, Status: Effective
Original Sheet No. 149 Original Sheet No. 149 : Effective
10.5 CREDITWORTHINESS OF SHIPPER - Transporter shall not be
required to perform Transportation service under this
FERC Gas Tariff or any Effective Service Agreement on
behalf of any Shipper who is or who has become insolvent
or who, at Transporter's request, fails within a
reasonable period to demonstrate creditworthiness.
Shipper's creditworthiness will be determined based upon
(i) a current credit rating of investment grade, defined
as a rating of at least "BBB-" or higher by Standard &
Poor's or a rating of at least "Baa3" or higher by
Moody's Investors Service, Inc. or (ii) by the evaluation
of the Shipper's latest overall financial condition,
including, but not limited to working capital, cash flow
analysis, debt levels, and profitability trends.
At Transporter's request, Shipper shall provide
Transporter the following information in order for
Transporter to analyze Shipper's creditworthiness:
Shipper's latest audited financial statements, including
income and cash flow statements; annual report, if
applicable; Form 10-K; a list of affiliates, parent
companies, or subsidiaries; three credit and trade
references; and credit bureau reports and information as
to pending litigation, collection actions, or judgments
that could cause a substantial deterioration in financial
condition. For purposes of this FERC Gas Tariff, the
insolvency of a Shipper will be evidenced by:
a. The filing by such Shipper, or parent entity
thereof, of a voluntary petition in bankruptcy; or
b. The entry of a decree or order by a court having
jurisdiction in the premises adjudging the Shipper
as bankrupt or insolvent. An exception can be made
for a Shipper who is a debtor in possession
operating under Chapter XI of the Federal Bankruptcy
Act, but only with adequate assurances that billing
hereunder will be paid promptly as a cost of
administration under the federal court's
jurisdiction; or