U S G Pipeline Company

ORIGINAL VOLUME NO. 1

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Effective Date: 04/01/2000, Docket: CP99-211-001, Status: Effective

Original Sheet No. 31 Original Sheet No. 31 : Effective

 

GENERAL TERMS AND CONDITIONS

 

6. CREDIT REQUIREMENTS

 

6.1 Unless previously provided to Transporter in the prior three months,

a Shipper seeking service from Transporter under Rate Schedule FT or

IT must provide:

 

(a) a copy of Shipper's most recent audited financial statement or

a financial statement certified by the Chief Financial Officer

of the Shipper (which certificate shall state that such

financial statements fairly represent the financial condition

and the results of the operations of the Shipper for the period

indicated therein) prepared in accordance with generally

accepted accounting principles;

 

(b) a copy of Shipper's most recent twelve months audited financial

statement or Annual Report and, if applicable, 10-K form;

 

(c) a list of Shipper's affiliates, including parent and

subsidiaries, if applicable.

 

6.2 In the event Shipper cannot provide the information in Section 6.1

above, Shipper shall, if applicable, provide that information for its

parent company. Transporter shall not be required to perform or to

continue service under any Rate Schedule on behalf of any Shipper who

is or has become insolvent or who, at Transporter's request, fails

within a reasonable period to demonstrate credit worthiness,

provided, however, such Shipper may receive service under any Rate

Schedule if Shipper prepays for such service or furnishes 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 a three month period or the duration of the

agreement, whichever is shorter. For purposes herein, the insolvency

of a Shipper shall be conclusively demonstrated by the filing by

Shipper or any parent entity thereof (hereinafter collectively

referred to as "the Shipper") of a voluntary petition in bankruptcy

or the entry of a decree or order by a court having jurisdiction in

the premises adjudging the Shipper bankrupt or insolvent, or

approving, as properly filed, a petition seeking reorganization,

arrangement, adjustment or composition of or in respect of the

Shipper under the Federal Bankruptcy Act or any other applicable

federal or state law, or appointing a receiver, liquidator, assignee,

trustee, sequestrator (or other similar official) of the Shipper or

of any substantial part of its property, or the ordering of the

winding-up or liquidation of its affairs.