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. 195 Original Sheet No. 195 : Effective

 

 

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

 

(b) A Shipper whose long term senior unsecured debt does

not have an acceptable rating as set forth in Section

28.2(a) above will be accepted as creditworthy if (i)

Transporter determines that, notwithstanding the

absence of an acceptable rating, the financial

position of Shipper (or an affiliate who guarantees

Shipper's obligations under the Agreement) is

acceptable to Transporter and its lenders; or (ii)

the Shipper provides an irrevocable letter of credit

in an amount equal to twelve (12) months of estimated

reservation charges under the Agreement; provided

that such amount shall be adjusted annually to

reflect any change in the estimated reservation

charges under the Agreement for the succeeding twelve

(12) months or (3) Shipper provides other security

acceptable to Transporter and its lenders, each

acting reasonably.

 

28.3 Credit Requirements for short-term Shippers (contracts less

than 1 year). Shipper shall establish credit in accordance

with Section 28.2.

 

(a) If a Shipper fails to establish creditworthiness as

provided in Section 28.2, Shipper may still receive

Transportation Service if, and only if, Shipper

furnishes and maintains in effect one of the

following at Shipper's discretion and acceptable to

Transporter: (i) a written guarantee for

unconditional payment from a third party which is

creditworthy as determined above; or (ii) an

irrevocable standby letter of credit; or (iii) a

prepayment amount equal to the amount which would be

charged to Shipper for six (6) month's service or the

term of service, whichever is less, plus an amount

equal to the three highest cashout payments, if any

incurred during the previous twelve months, plus an

amount equal to the cost of gas associated with any

lending requirements requested under Rate Schedule

PALS (if no prior history exists between the parties,

Transporter shall determine the amount of advance

payment hereunder to be deposited with Transporter)

or (iv) other security acceptable to Transporter.