Great Lakes Gas Transport, L.L.C.

Second Revised Volume No. 1

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Effective Date: 01/01/1998, Docket: RP98- 82-000, Status: Effective

Original Sheet No. 165 Original Sheet No. 165 : Effective

 

 

GENERAL TERMS AND CONDITIONS

FOR TRANSPORTATION SERVICE

(cont'd)

 

 

24. QUALIFICATION FOR SERVICE (cont'd)

 

For purposes herein, the insolvency of a Shipper shall be

evidenced by the filing by Shipper or any parent entity thereof

(hereinafter collectively referred to as "the Shipper") of a

voluntary petition in bankruptcy or the entry of a decree or

order by a court having jurisdiction in the premises adjudging

the Shipper bankrupt or insolvent, or approving, as properly

filed, a petition seeking reorganization, arrangement, adjust-

ment, or composition of or in respect of the Shipper under the

Federal bankruptcy Act or any other applicable federal or state

law, or appointing a receiver, liquidator, assignee, trustee,

sequestrator (or other similar official) of the Shipper or of any

substantial part of its property, or the ordering of the winding-

up or liquidation of its affairs, with said order or decree con-

tinuing unstayed and in effect for a period of sixty (60) con-

secutive days.

 

(b) For purposes of this Section, a Shipper's creditworthiness shall

not have been demonstrated if (i) the Shipper has a poor credit

history, as established by a reliable reporting agency, or with

respect to any services provided by Transporter, or (ii) the

Shipper's net worth, or its unencumbered assets in each state in

which Transporter operates, is worth less than the amount appli-

cable under Section 24.2(a)(i). Transporter may, from time to

time, limit the service it provides to Shipper to such level as

is commensurate with the prepayment or other security provided as

set forth above, or as is necessary to ensure that neither

Shipper's net worth, nor its unencumbered assets in the states in

which Transporter operates, is less than the amount applicable

under Section 24.2(a)(i).

 

(c) Shipper may receive service if it provides, no later than 12:00

p.m., central clock time, on the business day prior to the day on

which nominations for the desired service are due, to Transporter

the Specified Amounts, as defined below, either in the form of

(i) a prepayment to a bank designated by Transporter in U.S.

Federal funds or (ii) a letter of credit, irrevocable for ninety

(90) days, from a financial institution acceptable to Transpor-

ter. Transporter shall accept a nomination from Shippers quali-

fying for service under this Section 24.2(c) only to the extent

that the prepayment or letter of credit in effect as of such time

is sufficient to cover such Specified Amount.