Gulf Crossing Pipeline Company LLC

Original Volume No. 1

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Effective Date: 12/20/2008, Docket: RP09-61-000, Status: Effective

Original Sheet No. 500 Original Sheet No. 500

 

GENERAL TERMS AND CONDITIONS

Section 5

 

 

5. CREDITWORTHINESS

 

5.1 Creditworthiness for Transportation Service - Gulf Crossing shall

not be required to perform or to continue transportation service

under its FERC Gas Tariff on behalf of any Customer or Potential

Customer (both referred to in this Section 5 as Customer) that

fails to comply with Gulf Crossing's creditworthiness standards.

If Customer is found by Gulf Crossing to be non-creditworthy,

Gulf Crossing will, upon request, inform Customer in writing as

to the reasons Customer has been deemed non-creditworthy.

 

If Customer's credit standing ceases to meet Gulf Crossing's

credit requirements during the period of service, Customer must,

within five (5) Business Days, pay for one month of service in

advance to continue service. Customer must, within thirty (30)

Days, provide acceptable security, consistent with Gulf

Crossing's applicable creditworthiness standards. Security

requirements for a Customer who obtained capacity by executing a

precedent agreement before the pipeline was certificated differs

from security requirements for a Customer who obtains capacity

after the pipeline became operational. If Customer fails to

provide the required security within this time frame, Gulf

Crossing may suspend service immediately. Reservation charges

will not accrue or be charged for any day where service is

suspended due to failure to meet credit standards or provide

required security.

 

Further, Gulf Crossing may provide simultaneous written notice to

Customer and the Commission that it will terminate service in

thirty (30) Days if Customer fails to provide security. Gulf

Crossing also may exercise any other remedy available to Gulf

Crossing hereunder, at law or in equity. Customers shall provide,

initially and on a continuing basis, audited financial

statements, evidence of debt and/or credit ratings, and other

such information as is reasonably requested by Gulf Crossing to

establish or confirm Customer's qualification for service. Credit

limits will be established based on the level of requested

service, including without limitation a value for imbalance Gas,

and Customer creditworthiness, as established by the following: