Westgas Interstate, Inc.
First Revised Volume No. 1
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Effective Date: 09/01/1993, Docket: RS92- 89-002, Status: Effective
Original Sheet No. 56 Original Sheet No. 56 : Effective
GENERAL TERMS AND CONDITIONS
18. CREDITWORTHINESS AND BANKRUPTCY
18.1 Transporter shall not be required to initiate,
perform or to continue any transportation service under
any rate schedule for Shipper if Shipper is or has
become insolvent or, fails within 30 days of
Transporter's request for credit information to
demonstrate creditworthiness.
18.2 For the purpose of this 18, Shipper's lack of
creditworthiness may be shown by:
(a) A credit report from a credit reporting agency
which shows that Shipper does not pay its commercial
obligations within a reasonable period; or
(b) Other information that shows that Shipper does
not have the financial ability to pay for the
service requested; or
(c) Any act of insolvency on the part of Shipper.
18.3 Notwithstanding subparagraph (a), if Shipper is
found to lack creditworthiness, Shipper may receive
service if it prepays for such service or furnishes a
letter of credit or other good and sufficient security,
as determined by Transporter in its reasonable discretion,
in an amount equal to the cost of performing the service
requested by Shipper for up to a 3-month period.
18.4 The inability of Shipper to pay for the requested
service or insolvency of Shipper may be evidenced by
the filing by Shipper or any parent or affiliated
company (collectively referred to in this paragraph as
"Shipper") of a petition in bankruptcy or the entry of
a decree or order by a court of competent jurisdiction
adjudging Shipper bankrupt or insolvent, or approving
as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of Shipper's
debts under the federal Bankruptcy Act or any other
applicable federal or state law, or the appointment of
a receiver, liquidator, assignee, trustee, sequestrator
(or other similar official) of the assets of Shipper or
the winding-up or liquidation of Shipper's affairs.