Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-167-000, Status: Effective

Original Sheet No. 289 Original Sheet No. 289 : Effective

 

GENERAL TERMS AND CONDITIONS

 

18. CREDITWORTHINESS

 

18.1 TransColorado 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 TransColorado's

request for credit information to demonstrate creditworthiness.

 

18.2 Shipper must demonstrate evidence of creditworthiness by providing

the following:

 

(a) Primary bank references;

 

(b) Shipper's year-end audited financial statement and its last

quarterly report;

 

(c) A credit report from a credit reporting agency that shows

that Shipper pays its commercial obligations within a reasonable period.

 

18.3 Notwithstanding subparagraph 18.2(c), 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 TransColorado in its reasonable discretion, in an amount equal

to the cost of performing the service requested by Shipper for up to a three-

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.