Mobile Bay Pipeline Company

Second Revised Volume No. 1

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Effective Date: 02/01/1994, Docket: GT94- 18-000, Status: Effective

Original Sheet No. 99 Original Sheet No. 99 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

which could cause a substantial deterioration in its

financial condition, a condition of insolvency, or

the ability to exist as an on-going entity.

 

(vi) Evaluation of whether any significant collection

lawsuits or judgments are outstanding against

Shipper which could seriously affect Shipper's

ability to remain solvent.

 

4.3 Security Requirements

 

(a) Transporter will require Shipper to provide security (in

one of the forms described below) in order for service to

commence or continue under the following conditions:

 

(i) Shipper fails to meet Transporter's standard

objective credit criteria (described in Section 4.2

above).

 

(ii) Shipper fails to provide Transporter with required

credit information within fifteen (15) days of

request, provided such request shall not be

exercised at unreasonable intervals.

 

(iii) Shipper's account balances exceed the maximum credit

limit established through credit review (described

in Section 4.2 above).

 

(b) Should any of the conditions described in Section 4.3(a)

occur, Transporter will not deny service if Shipper

provides one of the following forms of security:

 

(i) A prepayment deposit or irrevocable letter of

credit, satisfactory in form and substance to

Transporter, from a bank or other financial

institution acceptable to Transporter. The amount