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

(Continued)

 

 

 

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

jurisdiction;

 

(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

entity; and

 

(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.