Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

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Effective Date: 05/21/2002, Docket: CP00- 6-004, Status: Effective

Original Sheet No. 193 Original Sheet No. 193 : Effective

 

 

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

 

28. CREDITWORTHINESS

 

28.1 (a) Transporter shall not be required to (i) execute a

Agreement providing for service under the applicable

Rate Schedule for any Shipper who fails to meet

Transporter's standards for creditworthiness, or (ii)

initiate service for a Shipper who fails to meet

Transporter's standards for creditworthiness, or

(iii) continue service for any Shipper who is or has

become insolvent or who, at Transporter's request,

fails within a reasonable period to demonstrate

creditworthiness pursuant to Transporter's standards.

 

(b) To permit Transporter to conduct a creditworthiness

review, a Shipper shall, upon request by Transporter,

render to Transporter: (i) complete and current

financial statements, including annual reports, 10K

reports or other filings with regulatory agencies,

prepared in accordance with generally accepted

accounting principles, or for non U.S.-based

Shippers, prepared in accordance with equivalent

principles; (ii) a list of corporate affiliates,

parent companies and subsidiaries; and (iii) any

credit reports from credit reporting agencies which

are available. In addition to the establishment of

creditworthiness: (i) Shipper must not be operating

under any chapter of the bankruptcy laws and must not

be subject to liquidation or debt reduction

procedures under state laws such as an assignment for

the benefit of creditors, or any informal creditors'

committee agreement; (ii) Shipper should not be

subject to the uncertainty of pending liquidation or

regulatory proceedings which could cause a

substantial deterioration in its financial condition,

a condition of insolvency, or the inability of

Shipper to exist as an ongoing business entity; (iii)

if Shipper has an ongoing business relationship with

Transporter, no undisputed delinquent balances should

be consistently outstanding for any services

performed previously by Transporter, and Shipper must

have paid its account