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. 337 Original Sheet No. 337

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

27. CREDITWORTHINESS (continued)

 

27.3 Credit Requirements for short-term Shippers (continued)

 

(b) If a Shipper fails to maintain creditworthiness, as

determined by Transporter in accordance with Sections 27.2

or 27.3(a), Shipper may continue to receive service for

fifteen (15) days after written notice from Transporter of

such failure, provided, however, that 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) 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, 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; or (iv) other security acceptable to Transporter. If

Shipper fails to provide Transporter with the appropriate

credit under this Section 27.3(b) within such fifteen (15)

day notice period, then Transporter may, without waiving

any rights or remedies it may have, and subject to a 30 day

notice to both the Commission and the Shipper, suspend

further service until Shipper's compliance with 27.2(b) is

obtained, provided, however, that if compliance is not made

within the 30 day notice period, Transporter shall no

longer be obligated to continue to provide service to such

Shipper.

 

(c) Transporter's credit appraisal procedures involve the

establishment of dollar credit limits on a standardized

nondiscriminatory basis which appraisal shall consider a

number of relevant factors including but not limited to the

cost of constructing any applicable facilities. To the

extent that a Shipper's account(s) with Transporter do not

exceed such limits and/or provided no new information

regarding Shipper's financial or business position becomes

known to Transporter, no new credit approval shall be

necessary for Shipper's existing Agreement(s) unless

subsequently amended; provided however, that Transporter

shall have the right, with Shipper's assistance and

cooperation, to update Shipper's credit file at any time.