Transcontinental Gas Pipe Line Company, LLC
Fourth Revised Volume No. 1
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Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective
Original Sheet No. 430 Original Sheet No. 430
GENERAL TERMS AND CONDITIONS
32. CREDIT WORTHINESS (Continued)
32.1 (c) A written attestation from Buyer that it is not operating under any chapter of
the bankruptcy laws and must not be subject to liquidation or debt reduction
procedures under state laws, such as an assignment for the benefit of creditors,
or any informal creditor's committee agreement. An exception can be made for a
Buyer who is a debtor in possession operating under Chapter XI of the Federal
Bankruptcy Act but only with adequate assurances that the transportation billing
will be paid promptly as cost of administration under the federal court's
(d) A written attestation from Buyer that it is not subject to the uncertainty of
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 ongoing business
(e) A written attestation from Buyer that no significant collection lawsuits or
judgments are outstanding which would seriously reflect upon the business
entity's ability to remain solvent.
32.2 (a) If Buyer has an ongoing business relationship with Seller, no uncontested
delinquent balances should be outstanding for natural gas sales, storage,
transportation services or imbalances previously billed 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.
(b) Buyer shall furnish Seller at least annually, and at such other time as is
requested by Seller, updated credit information as specified in Section 32.1 for
the purpose of enabling Seller to perform an updated credit appraisal. In
addition, Seller reserves the right to request such information at any time if
Seller is not reasonably satisfied with Buyer's credit worthiness or ability to
pay based on information available to Seller at that time.
(c) Seller shall not be required to perform and shall have the ability to suspend
service for any Buyer who is or has become insolvent, fails to demonstrate
credit worthiness under Section 32.1, fails to timely provide information to
Seller as requested in Section 32.2(b), or fails to demonstrate ongoing credit
worthiness as a result of credit information obtained pursuant to Section
32.2(b); provided, however, Buyer may receive or continue to receive service if
Buyer elects one of the following options:
(i) Payment in advance for up to three (3) months service.
(ii) A standby irrevocable letter of credit in form and substance
satisfactory to Seller in a face amount up to three (3) months service.
The letter of credit must be drawn upon a bank acceptable to Seller.
(iii) A guaranty in form and substance satisfactory to Seller, executed by a
person Seller deems credit worthy, of Buyer's performance of its
obligations to Seller.
(iv) Such other form of security as Buyer may agree to provide and as may be
acceptable to Seller.