East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 04/20/2008, Docket: RP08-277-000, Status: Effective

Second Revised Sheet No. 316B Second Revised Sheet No. 316B : Effective

Superseding: First Revised Sheet No. 316B

 

 

GENERAL TERMS AND CONDITIONS (Continued)

 

With respect to a request for new service or a request resulting in a

Billing Amendment, the security required by Transporter pursuant to

this Section 6.2 must be received by Transporter within ten (10)

Business Days of Transporter's written notification to Shipper,

otherwise, such request will be deemed to be null and void. With

respect to an existing service agreement, Shipper must tender (i) an

advance payment equal to the highest Month of activity (based on usage

of in-kind and loan agreements and the billed amounts, including

cashout amounts, for all other agreements) for all of Shipper's active

service agreements during the previous twelve (12) Months within five

(5) Business Days of Transporter's notification, and (ii) the security

required by this Section 6.2 within thirty (30) days of Transporter's

notification. If such advance payment or security is not received

within the specified time period(s), then Transporter may immediately

suspend service, and may terminate Shipper's service agreement(s) upon

thirty (30) days' notice to Shipper and the Commission.

 

Security in the form of an advance deposit shall accrue interest to

the benefit of Shipper from the date Transporter receives such

deposit. Interest on such advance deposits shall be calculated

monthly at the most recently established 91-day Treasury Bill auction

rate, as published in The Wall Street Journal. Alternatively, a

Shipper providing security in the form of an advance deposit may

deposit such security into an interest-bearing escrow account,

established by Shipper at Shipper's expense, to which account

Transporter shall have unrestricted access in the amount of an invoice

upon presentment of an invoice for the payment of services provided to

Shipper.

 

6.3 Once every twelve (12) months, Shipper shall provide Transporter with

updated financial information in the form required in Section 6.1

above. In addition, if Transporter becomes aware that there may be a

potentially material change in the financial condition of an existing

Shipper, Transporter shall require Shipper to promptly resubmit all of

the financial information required in Section 6.1 above. Transporter

shall re-evaluate Shipper's creditworthiness based upon the updated

information provided by Shipper pursuant to Section 6.1 above. If

Shipper's credit standing ceases to meet Transporter's credit

requirements at any time during the period of service, then

Transporter has the right to require security as specified in Section

6.2 above. If the credit standing of any entity issuing a letter of

credit and/or guaranty in support of Shipper's obligations ceases to

meet Transporter's credit appraisal at any time during the period of

service, then Transporter has the right to require Shipper to provide

replacement security that satisfies the requirements of Section 6.2

above.

 

6.4 In the event any information provided by Shipper pursuant to Sections

5.2 and 6.1 with respect to a request for new service or a request

that would result in a Billing Amendment materially changes prior to

execution of the new service agreement or Billing Amendment, as

applicable, or Shipper learns that such information may materially

change prior to execution of the service agreement or Billing

Amendment, as applicable, Shipper shall be obligated to provide

written notice of such material changes to Transporter. Transporter

shall require Shipper to resubmit all of the financial information

required in this Section 6 within ten (10) Business Days of the

identification of the material change. If such updated financial

information is not received within ten (10) Business Days, the request

for service will be deemed null and void. Transporter shall re-

evaluate Shipper's creditworthiness based upon the updated information

provided by Shipper pursuant to this Section 6.