Southern Natural Gas Company
Seventh Revised Volume No. 1
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Effective Date: 10/01/2004, Docket: RP04-523-000, Status: Effective
Second Revised Sheet No. 403J Second Revised Sheet No. 403J : Effective
Superseding: First Revised Sheet No. 403J
PIPELINE BALANCING AGREEMENT
4.8 Creditworthiness - Southern or Pipeline Operator may make an inquiry into the other
Party's creditworthiness and obtain adequate assurances of each's solvency and ability
to perform under this Agreement. In this regard, upon request, Pipeline Operator
and Southern agree to supply each other with credit information from time to time
including, but not limited to, three (3) credit references and either their most recent
audited or otherwise verified financial statement, annual report, Form 10-K or
alternate credit information sufficient to demonstrate that they will be able to meet
their financial obligations under this Agreement. The Parties acknowledge that
Southern or Pipeline Operator may terminate this Agreement at the end of the
current calendar month upon prior written notice to the other Party hereto if they
do not receive the information sought by the requesting Party which assures that
Party of Pipeline Operator's or Southern's solvency and ability to continue to perform
its obligations under this Agreement.
4.9 Assignability - This Agreement shall not be assignable by either Party.
4.10 Governing Law - The validity and interpretation of this Agreement shall be governed
by the laws of the State of _____________, without giving effect to any conflict of
laws doctrine that would apply the laws of another jurisdiction.
4.11 Superseding Agreement - The terms of this Agreement shall supersede the terms of
any other balancing agreement between Southern and Pipeline Operator with regard
to the allocation of gas at the Interconnection Point and the resolution of the
Monthly Pipeline Imbalance. No modifications or amendments to this Agreement
shall be valid or enforceable unless such modifications or amendments are stated in
writing and validly executed by both Parties.
4.12 Exhibits - Exhibits A and B attached hereto constitute part of this Agreement and
are incorporated herein by reference.
4.13 Notices - Except as otherwise provided herein or in the General Terms and
Conditions applicable to this Agreement, any notice under this Agreement shall be
given to the respective party as provided on Appendix E to the General Terms and Conditions,