Southwest Gas Storage Company

Original Volume No. 1

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Effective Date: 01/20/1991, Docket: CP90-1014-002, Status: Effective

Original Sheet No. 63 Original Sheet No. 63 : Superseded

 

 

RATE SCHEDULE FSS (Continued)

FIRM STORAGE SERVICE

 

adequate assurance that the billing for

storage service rendered hereunder will

be paid promptly pursuant to Section 6.6

as a cost of administration under the

federal court's jurisdiction.

 

(iv) Buyer shall confirm in writing that

Buyer is not subject to the uncertainty

in any pending liquidation or regulatory

proceedings in state or federal courts

which could cause a substantial

deterioration in its financial

condition, which could cause a condition

of insolvency, or the ability to exist

as an on-going business entity.

 

(v) If Buyer has an on-going business

relationship with Seller, no delinquent

balances should be consistently

outstanding for natural gas storage

services made previously by Seller and

Buyer must have paid its account during

the past according to the established

terms and not made deductions or

withheld payment for claims not

authorized by contract.

 

(vi) Buyer shall confirm in writing that no

significant collection lawsuits or

judgments are outstanding which would

seriously reflect upon the business

entity's ability to remain solvent.

 

(2) If a Buyer fails to satisfy the credit criteria,

such Buyer may still obtain storage hereunder if

it elects one of the following options: (1)

payment of an advance deposit equal to three (3)

months service; (2) a standby irrevocable letter

of credit drawn upon a bank acceptable to

Seller; (3) a security interest in collateral

provided by the Buyer found to be satisfactory

to Seller; or (4) a guarantee, acceptable to

Seller, by a person or another entity which does

satisfy the credit appraisal criteria.