Ozark Gas Transmission, L. L. C.

Original Volume No. 1

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Effective Date: 03/01/2002, Docket: RP02-155-000, Status: Effective

Original Sheet No. 34A Original Sheet No. 34A : Effective

 

RATE SCHEDULE FSS

FIRM STORAGE SERVICE (Continued)

 

9. CREDITWORTHINESS

 

9.1 Prior to execution of an FSS Service Agreement,

Shipper shall be required to establish

Creditworthiness with Transporter. Transporter

shall not be required to execute an FSS Service

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 FSS if Shipper furnishes, and

maintains for the term of the FSS Service

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 Maximum Daily Withdrawal Quantity

and Maximum Storage Quantity for three

Months; or

 

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

from gas sales associated with the

transportation of Natural Gas withdrawn from

storage to cover firm storage charges under

Rate Schedule FSS in form and substance

acceptable to Transporter.

 

Transporter shall not be required to initiate firm

storage service under an FSS Service Agreement to

a Shipper who becomes insolvent.

 

9.2 The determination of Shipper's Creditworthiness

shall be based upon:

 

(a) Cash flow consideration: comparison of the

maximum monthly reservation charges, as set

forth in Section 5.2 of this Rate Schedule

FSS, during the first Year of service with

information derived from Shipper's financial

statements.

 

(b) Balance sheet consideration: comparison of the net

present value of Shipper's estimated total financial

obligation to Transporter over the term of the requested FSS

Service Agreement with information derived from Shipper's

financial statements.