Sg Resources Mississippi, L.L.C

Original Volume No. 1

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Effective Date: 03/01/2008, Docket: RP08-184-000, Status: Effective

Original Sheet No. 157 Original Sheet No. 157 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

28. DEFAULT AND TERMINATION

 

28.1 Customer shall be in default under this FERC Gas

Tariff or the Storage Service Agreement if:

 

(a) Customer shall fail to pay any sums due to SGRM

hereunder and such failure continues for a period of five (5)

Business Days after written notice to Customer by SGRM;

 

(b) Customer fails to perform any of its material

covenants or obligations under this FERC Gas Tariff or the Storage

Service Agreement, other than obligations to make payments to

SGRM, and Customer does not remedy such failure within a period of

thirty (30) days after receipt of a notice from SGRM;

 

(c) Customer or its guarantor becomes insolvent, as set

forth in Section 3.3(i); or

 

(d) Customer fails to provide or maintain Financial

Assurances pursuant to Section 31.

 

Customer shall indemnify and hold harmless SGRM from and against

any costs or losses resulting from (a), (b), (c) or (d) above.

 

28.2 In the event of any Default by Customer, in addition

to all other remedies available to it pursuant to the Storage

Service Agreements or at law and in equity, SGRM may do any or all

of the following:

 

(a) refuse to accept any further deliveries of Gas from

or on behalf of Customer pursuant to all or any transactions;

 

(b) refuse to deliver Gas to or on behalf of Customer

pursuant to all or any transactions;

 

(c) set off any amount owing by SGRM to Customer

pursuant to any transaction(s) against amounts otherwise owing by

Customer to SGRM pursuant to any other transaction(s);

 

(d) suspend performance until Customer corrects the

default in full;