Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

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Effective Date: 06/15/2009, Docket: RP09-591-000, Status: Effective

Second Revised Sheet No. 515 Second Revised Sheet No. 515

Superseding: First Revised Sheet No. 515

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

3.3 Credit Evaluation

 

(A) Pipeline's acceptance of a request for new service or a request resulting in a Billing

Amendment under any Rate Schedule set forth in Pipeline's FERC Gas Tariff is contingent

upon Customer satisfying a credit appraisal by Pipeline. Pipeline shall apply, on a

non-discriminatory basis, consistent financial evaluation standards to determine the

acceptability of Customer's overall financial condition. Pipeline shall not use any

criteria, formula, ranking system or other methodology that would give any preference

or advantage to an affiliate of Pipeline. Such credit appraisal and any further or on-

going credit appraisal as may be necessary shall be based upon the following

information and criteria:

 

(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. Pipeline 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 accordance with

Section 3.3(A)(1) 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 XI 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 Pipeline, no delinquent

balances should be outstanding for services provided previously by Pipeline 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.