Mogas Pipeline LLC (Fomerly Missouri Interstate Gas)

First Revised Volume No. 1

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Effective Date: 06/01/2008, Docket: CP06-407-002, Status: Effective

Original Sheet No. 91 Original Sheet No. 91 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

36. Creditworthiness (continued)

 

Shipper has the option of continuing to receive

transportation service by providing one of the following within

30 days of notification that Shipper no longer meets Transporters

creditworthiness standards:

 

(a) Guarantee: Shipper may provide a guarantee of financial

performance in a form satisfactory to Transporter and for the

term of the FT agreement from a corporate affiliate of the

Shipper or a third party, either of which meets the

creditworthiness standards set forth in this Section 36;

 

(b) Cash Security Deposit: A Shipper may provide a cash

security deposit for service via cleared check or wire transfer.

The deposit must be sufficient to cover the applicable

reservation and usage charges for three (3) months of service and

shall be maintained until Shipper meets transporters

creditworthiness standards. Transporter will accrue interest on

cash security deposits based on interest rates established by

FERC;

 

(c) Letter of Credit: A Shipper may post a Letter of

Credit in a form acceptable to transporter; or,

 

(d) Any other security mutually agreed upon by Shipper and

Transporter. Such other security shall be accepted on a

nondiscriminatory basis by Transporter.

 

36.3 Security Requirements for Expansion Capacity - The security

requirements for expansion capacity will be separately identified

as part of any open season. The amount of security initially

required for expansion capacity on lateral facilities will be

determined by Transporter and may be up to the cost of the

facilities to be constructed. Where new lateral facilities serve

multiple shippers, an individual Shipper's maximum security

obligation will be no more than its proportionate share of the

total cost of the lateral facilities.

 

36.4 Other Creditworthiness Requirements - Shipper must also meet

the following criteria in order to be deemed creditworthy for

purposes of this Section 36:

 

(a) 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 the creditors, or any informal creditors'

committee assignment. An exception can be made for a Shipper who

is a debtor in possession operating under Chapter XI of the

Federal Bankruptcy Act but only with adequate assurances that the

bills will be paid promptly as a cost of administration under the

federal court's jurisdiction;

 

(b) Shipper must not be subject to pending liquidation or

regulatory proceedings in state or federal courts that could

cause a substantial deterioration in its financial condition or

that could cause a condition of insolvency or adversely affect

its ability to exist as an on-going business entity; and

 

(c) Shipper must have no significant outstanding collection

lawsuits or judgments that would jeopardize Shipper's ability to

remain solvent.