Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 04/01/1999, Docket: RP98-363-000, Status: Effective

Second Revised Sheet No. 399 Second Revised Sheet No. 399 : Effective

Superseding: First Revised Sheet No. 399

 

PRO FORMA

LIQUEFIABLES TRANSPORTATION AGREEMENT

(Continued)

 

proceeding initiated by Company or applicable to the services performed hereunder.

Shipper agrees that Company shall, without any further agreement by Shipper have the right

to change from time to time, all or any part of its FERC Gas Tariff, including without

limitation the right to change the rates and charges in effect hereunder, pursuant to Section

4(d) of the Natural Gas Act as may be deemed necessary by Company, in its reasonable

judgment, to assure just and reasonable terms of service and rates under the Natural Gas

Act. Nothing contained herein shall prejudice the rights of Shipper to contest at any time

the changes made pursuant to this Section 6.3, including the right to contest the rates or

charges for the services provided under this Agreement, from time to time, in any rate

proceedings by Company under Section 4 of the Natural Gas Act or to file a complaint

under Section 5 of the Natural Gas Act with respect to such rates or charges.

 

ARTICLE VII

 

CREDITWORTHINESS

 

7.1 If at any time Shipper is or becomes insolvent, or fails to demonstrate

creditworthiness, or fails to make payments pursuant to Section 15 of the General Terms

and Conditions, Shipper must provide to Company one of the following forms of credit to

enter into or maintain in effect this Agreement: (a) a security deposit or other good and

sufficient surety, as determined by Company in its reasonable discretion, in an amount equal

to the cost of performing the maximum transportation service requested by Shipper for a three

(3) month period; or (b) a guarantee from a creditworthy party that said party will be

responsible for payment of all charges and penalties assessed by Company but not

paid by Shipper hereunder.

 

ARTICLE VIII

 

MISCELLANEOUS

 

8.1 This Agreement constitutes the entire Agreement between the parties and no

waiver by Company or Shipper of any default of either party under this Agreement shall

operate as a waiver of any subsequent default whether of a like or different character.