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.