Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 07/01/1993, Docket: RS92- 18-004, Status: Effective

Original Sheet No. 114 Original Sheet No. 114 : Superseded

 

GENERAL TERMS AND CONDITIONS (Continued)

 

 

11.3 Credit Evaluation

 

Pipeline's acceptance of a request for service is contingent upon

the requesting party's satisfying a credit evaluation by

Pipeline. To facilitate the credit evaluation, the requesting

party will provide the following information as requested by

Pipeline:

 

a. Bank references.

 

b. Year end audited financial statements together with the

latest quarterly report.

 

c. A list of all affiliates.

 

d. A statement of whether the requesting party is operating

under any bankruptcy or insolvency law or any law relating to

the relief of debtors, reorganization or creditors

assignment.

 

e. Such other information as Pipeline deems necessary to

evaluate the creditworthiness of the requesting party.

 

11.4 Credit Alternatives

 

Notwithstanding the terms and conditions herein, a customer that

does not demonstrate creditworthiness has the option of receiving

service by providing to Pipeline one of the following:

 

a. An irrevocable letter of credit from a creditworthy financial

institution in an amount equal to the cost of providing the

maximum level of the customer's requested service for the

shorter of a twelve (12) month period or the term of the

customer's service agreement. Said letter of credit must

have a minimum term of at least one year.

 

b. Prepayment for service equal to the cost of providing the

maximum level of a customer's requested service for the

shorter of a twelve (12) month period or the term of the

customer's service agreement.

 

c. A guarantee of the customer's financial performance for the

term of the service agreement from a creditworthy (as

determined herein) affiliate or third party, in a form

satisfactory to Pipeline.