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. 194 Original Sheet No. 194 : Effective

 

 

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

 

in the past according to the credit terms and

contract provisions and not made deductions or

withheld payment for claims not authorized by

contract; and (iv) no significant collection,

lawsuits or judgments are outstanding which would

adversely impact the ability of Shipper to remain

solvent.

 

(c) For purposes of 28.1(b), the insolvency of a Shipper

shall be presumed by the filing by such Shipper or

any parent entity thereof of a voluntary petition in

bankruptcy or the entry of a decree or order by a

court having proper jurisdiction adjudging the

Shipper or any parent entity thereof bankrupt or

insolvent. The insolvency of a Shipper shall also be

presumed by the filing by the Shipper or its parent

entity of a voluntary or involuntary proceeding,

reorganization, receivership, liquidation, a debt

reduction procedure, assignment for the benefit of

creditors, formal or informal creditor restructuring

agreement, or the filing of any case under the United

States Bankruptcy Code, or any other applicable

federal or state law.

 

(d) If any of the events or actions described in Section

28.1(c) above, shall be initiated or imposed during

the term of service hereunder, Shipper shall provide

notification thereof to Transporter within two (2)

Business Days of any such initiated or imposed event

or action.

 

28.2 Credit Requirements for long-term Shippers (contracts

greater than 1 year). Shipper shall at all times comply

with one of the following credit worthiness requirements:

 

(a) Shipper (or an affiliate which guarantees Shipper's

obligations under the Agreement) has an investment

grade credit rating for its long term senior

unsecured debt from Moody's Investor Service of Baa3

or better or from Standard & Poor's of BBB- or

better. A Shipper who qualifies under this category

initially but is later downgraded below such

investment grade will be required to qualify under

another category below.