Western Gas Interstate Company

Fourth Revised Volume No. 1

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Effective Date: 04/01/1996, Docket: CP96- 81-006, Status: Effective

Original Sheet No. 215 Original Sheet No. 215 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(continued)

 

sufficient security, as determined by Western in its

reasonable discretion, in an amount up to the cost of

performing the service requested by Buyer or Shipper

for a three month period. For purposes herein, the

insolvency of a Buyer or Shipper shall be evidenced by

the filing by Buyer or Shipper or any parent entity

thereof (hereinafter collectively referred to as "the

Buyer or Shipper") of a voluntary petition in

bankruptcy or the entry of a decree or order by a court

having jurisdiction in the premises adjudging the Buyer

or Shipper bankrupt or insolvent, or approving, as

properly filed, a petition seeking reorganization,

arrangement, adjustment or composition of or in respect

of the Buyer or Shipper under the Federal Bankruptcy

Act or any other applicable federal or state law, or

appointing a receiver, liquidator, assignee, trustee,

sequestrator (or other similar official) of the Buyer

or Shipper or of any substantial part of its property,

or the ordering of the winding-up or liquidation of its

affairs, with said order or decree continuing unstayed

and in effect for a period of sixty (60) consecutive

days.

 

For purposes herein the creditworthiness of Buyer or

Shipper shall be determined by Western upon its review

of Buyer's or Shipper's most recent financial

statement, annual report, or Form 10-K. Buyer or

Shipper must as a minimum, meet the following criteria

for purposes of this Section 10:

 

(a) Buyer or Shipper must not be operating under any

chapter of the bankruptcy laws, and must not be

subject to liquidation or debt reduction

procedures under state laws; and

 

(b) Buyer or Shipper must be able to provide Western

with at least one acceptable bank reference and

two acceptable trade references or an acceptable

report from a national credit bureau, which, upon

verification by Western, will demonstrate that

Buyer's or Shipper's obligations are being paid on

a current or reasonably prompt basis.