Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 09/01/2006, Docket: RP06-463-000, Status: Effective

Original Sheet No. 263 Original Sheet No. 263 : Effective

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

adequate assurances satisfactory to Transporter that the billing will be paid promptly

as cost of administration under the federal court's jurisdiction; (ii) Shipper should

not be subject to the uncertainty of pending liquidation or regulatory proceedings in

state or federal courts which could cause a substantial deterioration in its financial

condition, which could cause a condition of insolvency, or the ability to exist as an

ongoing business entity; (iii) if Shipper has an ongoing business relationship with

Transporter, no delinquent balances should be consistently outstanding for natural gas

sales or transportation services made previously by Transporter, and Shipper must have

paid its account in the past according to the credit terms and contract provisions and

not made deductions or withheld payment for claims not authorized by contract; and (iv)

no significant collection, lawsuits or judgments are outstanding which would seriously

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

 

In the case of a joint action agency which acts as Shipper for other public agencies

which have aggregated their firm service agreements into a single Service Agreement

pursuant to the aggregation provisions of the settlement filed and approved in Docket

No. RS92-16-000, the foregoing information shall be provided by each member public

agency who in turn shall guarantee the obligations of the joint action public agency to

the extent of each such member's share of the total firm entitlement of such joint

action public agency.

 

(c) (1) If a Shipper fails to establish creditworthiness as provided herein, Shipper may

still receive interruptible service of any duration, or firm service through

purchase of capacity relinquished for a maximum period of up to one (1) month

under the applicable Rate Schedule provided it furnishes and maintains in effect

one of the following at Shipper's discretion and acceptable to Transporter: (i) a

written guarantee from a third party which is creditworthy as determined above;

or (ii) an irrevocable standby letter of credit; or (iii) an amount equal to the

amount which would be charged to Shipper for three (3) month's service or the

term of service, whichever is less, to be deposited in an escrow account at a

bank of Shipper's choosing; or (iv) other security.

 

(2) If a Shipper fails to establish creditworthiness as provided herein, Shipper may

still receive firm service or service through purchase of capacity relinquished

for a period longer than one (1) month under the applicable Rate Schedule

provided it furnishes and maintains in effect one of the following at Shipper's

discretion and acceptable to Transporter: (i) a written guarantee from a third

party which is creditworthy as determined above; or (ii) an irrevocable standby

letter of credit; or (iii) an amount equal to the amount which would be charged

to Shipper for three (3) month's service or the term of service, whichever is

less, to be deposited in an escrow account at a bank of Shipper's choosing; or

(iv) other security.