High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 10/01/2007, Docket: RP06-540-004, Status: Effective

Fifth Revised Sheet No. 88 Fifth Revised Sheet No. 88 : Effective

Superseding: Substitute Fourth Revised Sheet No. 88

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

5. CREDITWORTHINESS

 

5.1 HIOS shall not be required to perform or to continue to perform service

under Rate Schedules FT-1, FT-2, and IT on behalf of any Shipper who is or

has become insolvent, or who, at HIOS' request, fails within a reasonable

period to demonstrate in HIOS' reasonable determination, the ability to pay

all anticipated transportation charges when due for at least three (3)

months from the time of demonstration; provided, however, such Shipper may

receive service under Rate Schedules FT-1, FT-2, and IT if Shipper prepays

for such service or furnishes good and sufficient security, as determined

by HIOS in its reasonable discretion, in an amount equal to the cost of

performing the service requested by Shipper for a three month period, such

cost to be determined by multiplying the Shipper's MDQ by the number of

days in such three month period multiplied by the applicable overrun rate

per Dth, as set forth on Sheet No. 10 of this Tariff. Also refer to

Section 2.2(k) and 10.2 of these General Terms and Conditions.

 

5.2 If HIOS requests additional information to be used for credit evaluation after

the initiation of service, HIOS, contemporaneous with the request, should

provide its reason(s) for requesting the additional information to the Shipper

and designate to whom the response should be sent. HIOS and the Shipper may

mutually agree to waive the requirements of this standard.

 

5.3 Upon receipt of either an initial or follow-up request from HIOS for information

to be used for creditworthiness evaluation, the Shipper's authorized

representative(s) should acknowledge receipt of HIOS's request. HIOS and the

Shipper may mutually agree to waive the requirements of this standard.

 

5.4 The Shipper's authorized representative(s) should respond to HIOS's request for

credit information, as allowed by HIOS's tariff, on or before the due date

specified in the request. The Shipper should provide all the credit information

requested by HIOS or provide the reason(s) why any of the requested information

was not provided.

 

5.5 Upon receipt from the Shipper of all credit information provided pursuant to

applicable NAESB WGQ standards, HIOS should notify the Shipper's authorized

representative(s) that it has received such information. HIOS and the Shipper

may mutually agree to waive the requirements of this standard.