Ozark Gas Transmission, L. L. C.

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 11/01/1998, Docket: CP98-266-002, Status: Effective

Original Sheet No. 21 Original Sheet No. 21 : Effective

 

 

RATE SCHEDULE FTS (continued)

 

Gas Policy Act, on whose behalf the transportation will

be performed that the transportation will be "on behalf

of" a local distribution company or intrastate pipeline

company as that term may be defined by the Commission.

 

4.8 At the time that an FTS Agreement is executed, Shipper

shall provide the names of the entities ultimately

receiving the Natural Gas to be transported by

Transporter (except where the Shipper is a Local

Distribution Company ("LDC"), interstate pipeline or

intrastate pipeline purchasing the gas for its system

supply) and verification that all end-users have executed

sales contracts to use the transportation service

provided for in the FTS Service Agreement.

 

5. CREDITWORTHINESS

 

5.1 Prior to execution of an FTS Agreement, Shipper shall be

required to establish Creditworthiness with Transporter.

Transporter shall not be required to execute an FTS

Agreement with any Shipper who fails to meet

Transporter's standard for Creditworthiness. Any Shipper

failing to meet Transporter's standard for

Creditworthiness may still receive service under this

Rate Schedule FTS if Shipper furnishes, and maintains for

the term of the FTS Agreement, in form and substance

acceptable to Transporter either (i) a guarantor letter

from a creditworthy party, or (ii) the following:

 

(a) a standby letter of credit from a major bank in an

amount equal to the charge for performing the

service for Shipper at the contracted MDQ for three

Months; or

 

(b) an escrow account for all Shipper's revenues from

gas sales associated with the transportation service

to cover transportation charges under Rate Schedule

FTS in form and substance for three Months.

 

Transporter shall not be required to initiate firm service

under an FTS Agreement to a Shipper who becomes insolvent.

 

5.2 The determination of Shipper's Creditworthiness shall be

based upon:

 

(a) Cash flow consideration: comparison of the maximum

monthly demand