Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 02/16/2003, Docket: GT02- 35-004, Status: Effective

Sub Fifth Revised Sheet No. 404 Sub Fifth Revised Sheet No. 404 : Effective

Superseding: Fourth Revised Sheet No. 404

 

GENERAL TERMS AND CONDITIONS (continued)

 

3. Modification of Service

 

Any modification of an existing Part 284 transportation or storage service shall be

requested by Shipper's submission of a request for change via PASSKEY or by

facsimile if necessary. Such request for change, after having been fully processed

and accepted by Transporter, shall be deemed to have the full force and effect of

the underlying service agreement.

 

4. Credit Evaluation

 

4.1 Upon Transporter's request, a Shipper seeking or utilizing Part 284 service

from Transporter must provide, to the extent such information is in

Shipper's possession:

 

(a) a copy of Shipper's audited financial statements for the previous two

(2) fiscal year ends certified by the Chief Financial Officer or

Chief Accounting Officer of the Shipper (which certificate shall

state that such financial statements fairly present the financial

condition and results of operations of the Shipper for the period

indicated therein) prepared in accordance with generally accepted

accounting principles or, for non-U.S.-based Shippers, prepared in

accordance with equivalent standards;

 

(b) a copy of Shipper's financial statements for the most recent period

available, which may be unaudited, but if unaudited, must be signed and

attested by Shipper's President and Chief Financial Officer as fairly

representing the financial position of the company;

 

(c) a statement of the legal composition of the business, i.e.,

corporation, limited partnership, etc.;

 

(d) a statement of the length of time that Shipper has been in business; and

 

(e) a list of Shipper's affiliates, including parents and subsidiaries,

if applicable.

 

4.2 Transporter may also require, either with the request for service or at the

time of execution of the service agreement, or at any future time as

Transporter deems necessary to conduct ongoing credit evaluations of Shipper,

that the Shipper shall provide Transporter with any or all of the following

information and criteria to allow Transporter to determine the Shipper's

Creditworthiness:

 

(a) Shipper shall provide a bank reference and at least two trade

references. The results of reference checks and any credit reports

submitted herein must show that Shipper's obligations are being paid

on a reasonably prompt basis;

 

(b) Shipper shall confirm in writing that Shipper is not operating under

any chapter of the bankruptcy laws and is not subject to liquidation

or debt reduction procedures under state laws, such as an assignment

for the benefit of creditors, or any informal creditors' committee

agreement. Transporter may make an exception for a Shipper who is a

debtor in possession operating under Chapter XI of the Federal

Bankruptcy Act if Transporter is adequately assured that the service

billing will be paid promptly as a cost of administration under the

federal court's jurisdiction;