Petal Gas Storage, L. L. C.

Original Volume No. 1

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Effective Date: 01/09/2010, Docket: RP10-229-000, Status: Effective

Third Revised Sheet No. 107 Third Revised Sheet No. 107

Superseding: Second Revised Sheet No. 107

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

condition of insolvency, or which could impair the

ability of the Customer to continue to exist as an

ongoing business entity.

 

(v) If Customer has an ongoing business relationship with

Petal, no delinquent balances shall be consistently

outstanding for natural gas storage and transportation

services provided previously by Petal. Customer shall

have paid its account for past periods according to

established contract terms, not having made deductions

or withheld payment not authorized by contract.

 

(vi) No significant collection lawsuits or judgments shall be

outstanding which would seriously reflect upon the

business entity's ability to remain solvent.

 

(g) Petal may monitor Customer's creditworthiness on an ongoing basis

throughout the term of Customer's service agreement(s), including

monitoring Customer's compliance with Section 3.4(iii) through

(vi) above. Petal shall not be required to perform or continue

service under any Rate Schedule on behalf of any Customer who is

or has become insolvent or who fails to demonstrate

creditworthiness within a reasonable period of time. At any time

during the term of Customer's service agreement, Petal may, upon

reasonable notice, require that Customer provide additional

credit information, including updates of the materials described

in Section 3.4(f)(i), (ii) and (iii). If a Customer fails to

demonstrate creditworthiness at the time Customer makes its

service request, or at any time during the term of Customer's

service agreement, such Customer may still obtain or continue to

receive service hereof if it provides to Petal one of the

following: (i) a standby irrevocable letter of credit drawn upon

a bank acceptable to Petal, in an amount acceptable to Petal;

(ii) a security interest in collateral provided by the Customer

found to be satisfactory to Petal; or (iii) guarantee of

performance of all Petal's obligations by a person or entity

which does satisfy the credit appraisal.

 

3.5 Subsequent Information

 

(a) If any of the events or actions described in Sections 3.4(f)(iii),

3.4(f)(iv) and 3.4(f)(vi) above, shall be initiated or imposed

during the term of service under a storage or transportation

service agreement, Customer shall provide notification to Petal

within two working days of any such initiated or imposed event or

action. Customer shall also promptly provide such additional

Customer credit information as may be reasonably required by

Petal, at any time during the term of service under a storage or

transportation service agreement, to determine Customer's

creditworthiness.

 

(b) After receipt of a request for service, Petal may require that

Customer furnish additional information as a prerequisite to

Petal offering to execute a storage or transportation service

agreement with Customer. Such information may include proof of

Customer's lawful right and title to cause the gas to be