Ozark Gas Transmission, L. L. C.
Original Volume No. 1
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Effective Date: 09/01/2005, Docket: RP05-405-000, Status: Effective
Second Revised Sheet No. 88A Second Revised Sheet No. 88A : Effective
Superseding: Substitute First Revised Sheet No. 88A
GENERAL TERMS AND CONDITIONS (continued)
14.6 Transporter shall not award capacity release
offers to a Customer until and unless the
Customer meets the Transporter's
creditworthiness requirements applicable to
all services that it receives from the
Transporter, including the service
represented by the capacity release.
Transporter shall not be required to commence
service or to continue to perform service
under Rate Schedules FTS or FSS for any
Designated Replacement Shipper or Replacement
Shipper (collectively for purposes of this
Section 14.6, "Replacement Shipper") who
fails to demonstrate Creditworthiness as
reasonably determined by Transporter. Unless
Replacement Shipper, at the time of
submission of a bid for released capacity has
an existing satisfactory credit history with
Transporter, Replacement Shipper shall submit
such information requested by Transporter
sufficient for Transporter to determine
Replacement Shipper's Creditworthiness.
Transporter's determination of
Creditworthiness shall be based upon a review
of Replacement Shipper's financial
statements, bank references, trade
references, or information relating to
Replacement Shipper's financial status and
obligation payment history. Upon Replacement
Shipper's request, Transporter shall provide
a written explanation of any credit
limitation applied to Replacement Shipper.
Transporter may require Replacement Shipper
to maintain throughout the term of its
Agreement either (a) a prepaid account with
Transporter, (b) an escrow account, (c) a
letter of credit, or (d) such other good and
sufficient security as reasonably determined
by Transporter in an amount not exceeding
Transporter's estimate of three (3) Months of
transportation charges calculated at
Replacement Shipper's firm transportation MDQ
or firm storage MDWQ and MSQ, as applicable.
Transporter will also permit another entity
to guarantee Replacement Shipper's
obligations, provided that the guarantor has
sufficient credit available, as determined by
Transporter. Transporter may, without
waiving any rights or remedies it may have,
suspend further service until such acceptable
security is received by Transporter. Upon
Replacement Shipper's establishment of an
acceptable credit record or upon expiration
of its Transportation Service Agreement,
Transporter shall refund Replacement
Shipper's deposit within thirty (30) Days.