Steuben Gas Storage Company

Original Volume No. 1

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Effective Date: 06/27/1996, Docket: CP96- 35-002, Status: Effective

Original Sheet No. 152 Original Sheet No. 152 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

rights as Seller under the Agreement, and that upon the

request of Seller, such Customer shall execute and deliver a

consent and agreement reasonably satisfactory to Seller

consenting to the collateral assignment by Seller to its

lenders of the Agreement in conformance with the terms of

Seller's financing commitments, and shall provide an opinion

of counsel opining to such matters as Seller may reasonably

request and/or such certificates as Seller may reasonably

request, which opinion and/or certificates shall be delivered

to Seller's lenders in conformance with the terms of Seller's

financing commitments.

 

11.5 Creditworthiness. Seller shall not be required to commence

service or, subject to the following provisions, to continue

to provide service and may terminate a Agreement with any

Customer under Rate Schedule FS with a primary term of one

year or less and Service Agreements under Rate Schedule IS,

if:

 

(1) Customer is or has become insolvent;

 

(2) Customer has applied for bankruptcy under Chapter

11 of the Bankruptcy Code, or which is subject to

similar proceedings under State or Federal law; or

 

(3) Customer fails to provide to Seller a bank

reference and at least two trade references which

indicate that Customer's obligations are being

paid on a prompt basis provided, however, that any

such Customer that is receiving service shall

continue to receive service for a period of

fifteen (15) Days after written notice by Seller

of any such circumstance, and shall continue

thereafter to receive service if, within such

fifteen (15) Day notice period, such Customer:

 

(i) deposits with Seller and maintains, on

account, an amount which would be due for

three (3) Months service at the full

contract quantities set forth in the

Service Agreement; or