Ozark Gas Transmission, L. L. C.
Original Volume No. 1
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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.
5.1 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
(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
(a) Cash flow consideration: comparison of the maximum