Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 09/04/2008, Docket: CP07-44-005, Status: Effective

Original Sheet No. 336 Original Sheet No. 336

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

27. CREDITWORTHINESS (continued)

 

27.3 Credit Requirements for short-term Shippers (contracts less than

1 year). Shipper shall establish credit in accordance with

Section 27.2.

 

(a) If a Shipper fails to establish creditworthiness as

provided in Section 27.2, Shipper may still receive

Transportation Service if, and only if, Shipper furnishes

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

discretion and acceptable to Transporter: (i) a written

guarantee for unconditional payment from a third party

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

irrevocable standby letter of credit; or (iii) a prepayment

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, plus an amount equal to the

three highest Cashout payments, if any incurred during the

previous twelve months, plus an amount equal to the cost of

Gas associated with any lending requirements requested

under Rate Schedule PALS (if no prior history exists

between the parties, Transporter shall determine the amount

of advance payment hereunder to be deposited with

Transporter) or (iv) other security acceptable to

Transporter.