East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 06/15/2009, Docket: RP09-595-000, Status: Effective

Second Revised Sheet No. 316 Second Revised Sheet No. 316

Superseding: First Revised Sheet No. 316

GENERAL TERMS AND CONDITIONS (Continued)

6. CREDIT REQUIREMENTS

6.1 Transporter's acceptance of a request for new service or a request

resulting in a Billing Amendment under any Rate Schedule set forth in

Transporter's FERC Gas Tariff is contingent upon Shipper satisfying a

credit appraisal by Transporter. Transporter shall apply, on a non-

discriminatory basis, consistent financial evaluation standards to

determine the acceptability of Shipper's overall financial condition.

Transporter shall not use any criteria, formula, ranking system or

other methodology that would give any preference or advantage to an

affiliate of Transporter. Such credit appraisal and any further or

on-going credit appraisal as may be necessary shall be based upon the

following information and criteria:

(a) Shipper shall provide current financial statements, annual

reports, 10-K reports or other filings with regulatory agencies

which discuss Shipper's financial status, a list of all

corporate affiliates, parent companies and subsidiaries, and any

reports from credit reporting and bond rating agencies which are

available. Transporter shall determine the acceptability of the

Shipper's overall financial condition;

(b) Shipper shall provide a bank reference and at least two trade

references. The results of reference checks and any credit

reports submitted in accordance with Section 6.1(a) must show

that Shipper's obligations are being paid on a reasonably prompt

basis;

(c) Shipper shall confirm in writing that Shipper is not operating

under any chapter of the bankruptcy laws and is not subject to

liquidation or debt reduction procedures under state laws, such

as an assignment for the benefit of creditors, or any informal

creditors' committee agreement. 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 assurance

that the service billing will be paid promptly as a cost of

administration under the Federal Court's jurisdiction;

(d) Shipper shall confirm in writing that Shipper is not aware of

any change in business conditions which would cause a

substantial deterioration in its financial condition, a

condition of insolvency or the inability to exist as an ongoing

business entity;

(e) If Shipper has an on-going business relationship with

Transporter, no delinquent balances should be outstanding for

services provided previously by Transporter and Shipper must

have paid its account during the past according to the

established terms and not made deductions or withheld payment

for claims not authorized by contract; and

(f) Shipper shall confirm in writing that no significant collection

lawsuits or judgments are outstanding which would seriously

reflect upon the business entity's ability to remain solvent.