Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 08/15/2007, Docket: RP07-526-000, Status: Effective

First Revised Sheet No. 109 First Revised Sheet No. 109 : Effective

Superseding: Original Sheet No. 109

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

3. CONTRACTING FOR SERVICE (continued)

 

3.4 Credit Evaluation (continued):

 

(1) Customer shall provide current financial statements,

annual reports, 10-K reports or other filings with

regulatory agencies which discuss Customer's financial

status, a list of all corporate affiliates, parent

companies and subsidiaries, and any reports from

credit reporting and bond rating agencies which are

available. Saltville shall determine the

acceptability of the Customer's overall financial

condition;

 

(2) Customer shall provide a bank reference and at least

two trade references. The results of reference checks

and any credit reports submitted in Section 3.4(a)(1)

above must show that Customer's obligations are being

paid on a reasonably prompt basis;

 

(3) Customer shall confirm in writing that Customer is not

operating under any chapter of the bankruptcy laws and

is not subject to liquidation or debt reduction

procedures under state laws, such as an assignment for

the benefit of creditors, or any informal creditors'

committee agreement. An exception can be made for a

Customer who is a debtor in possession operating under

Chapter 11 of the Federal Bankruptcy Act but only with

adequate assurance that the service billing will be

paid promptly as a cost of administration under the

Federal Court's jurisdiction;

 

(4) Customer shall confirm in writing that Customer is not

aware of any change in business conditions which would

cause a substantial deterioration in its financial

condition, a condition of insolvency or the inability

to exist as an ongoing business entity;

 

(5) If Customer has an on-going business relationship with

Saltville, no delinquent balances should be

outstanding for services made previously by Saltville

and Customer must have paid its account during the

past according to the established terms and not made

deductions or withheld payment for claims not

authorized by contract; and

 

(6) Customer shall confirm in writing that no significant

collection lawsuits or judgments are outstanding which

would seriously reflect upon the business entity's

ability to remain solvent.