Ozark Gas Transmission, L. L. C.

First Revised Volume No. 1

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Effective Date: 11/01/2008, Docket: RP08-617-000, Status: Effective

Original Sheet No. 186 Original Sheet No. 186

 

GENERAL TERMS AND CONDITIONS (continued)

 

30.9 A Shipper that does not have an Acceptable Credit Rating or

is not otherwise deemed creditworthy by Transporter, or a Shipper

that fails to maintain an Acceptable Credit Rating or no longer

meets Transporter's criteria for being deemed creditworthy, may

receive or continue to receive service if Shipper provides

Transporter with a Parental Guarantee or one or more of the

following forms of Financial Assurances:

 

(a) An irrevocable Letter of Credit, subject to the following:

 

(1) each Letter of Credit shall be in effect for the lesser of

one (1) year or for the Term of the transaction plus 120 days. If

the Term of the transaction plus 120 days is greater than one (1)

year, Shipper shall ensure that its obligation to Transporter is

secured continuously, and accordingly shall provide Transporter

with a replacement Letter of Credit no later than 120 days prior

to the expiration of the then-effective Letter of Credit.

Transporter will return the expiring Letter of Credit to Shipper

within five (5) days of the date the Replacement Letter of Credit

becomes effective;

 

(2) each Letter of Credit shall be in form and substance

satisfactory to Transporter, and shall provide for partial

drawdowns and, without limiting the generality of the foregoing,

shall be issued by a financial institution acceptable to

Transporter that is rated at least A- by Standard & Poor's

Corporation and A3 by Moody's Investors Service, Inc.; and

 

(3) in addition to all other remedies available to Transporter at

law or in equity, if Shipper fails to provide a replacement Letter

of Credit in accordance with this Section 30.9(a), Transporter may

draw upon the expiring Letter of Credit to the full amount thereof

and apply the funds so drawn in payment in whole or in part of the

obligations of Shipper under each or any of Shipper's Service

Agreements.