W T G Hugoton, LP
Original Volume No. 1
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Effective Date: 08/01/2007, Docket: CP06- 90-002, Status: Effective
Original Sheet No. 259 Original Sheet No. 259 : Effective
GENERAL TERMS AND CONDITIONS
For purposes of "Security" under this Section 39, the value of gas shall
be based on the Imbalance Index Price.
39.4 To permit WTG Hugoton to conduct a creditworthiness review, a Shipper
shall, upon request by WTG Hugoton, render to WTG Hugoton: (i) a completed
credit application, and (ii) complete financial statements prepared in
accordance with generally accepted accounting principles or, for
non-U.S.-based Shippers, prepared in accordance with equivalent principles.
Upon requesting transportation service, a Shipper must submit to WTG Hugoton a
completed credit application unless it has previously submitted such to WTG
Hugoton within the last twelve (12) months. If a Shipper elects to provide an
irrevocable standby letter of credit or pre-payment, the completed credit
application, and financial statement requirement is waived by WTG Hugoton.
39.5 WTG Hugoton shall have the right to review a Shipper's creditworthiness
on an ongoing basis and Shipper shall provide, upon WTG Hugoton's request,
updated financial statements periodically in order to determine the continuing
creditworthiness of a Shipper. Shipper shall have at least 3 business days to
respond to WTG Hugoton's request for financial statements. Upon review of the
Shipper's financial statements, WTG Hugoton shall determine if the Shipper is
creditworthy. If the Shipper is determined to be non-creditworthy, WTG
Hugoton may require Security as set forth herein. Shipper shall have at least
5 business days from WTG Hugoton's written request to pay WTG Hugoton for one
month of service in advance. Shipper shall have at least 30 days to provide
the next three (3) months of Security to continue service. If the Shipper
fails to provide the required Security within these time periods, WTG Hugoton
may suspend service immediately. In addition, WTG Hugoton will provide at
least 30 days written notice to Shipper and the Commission that it will
terminate service if the Shipper fails to provide the required Security.
39.6 Shipper shall have the right to request that its credit status be
reevaluated by WTG Hugoton at any time. If the Security requirements are
terminated and the Shipper previously had provided WTG Hugoton a pre-payment,
the Shipper may elect either a refund or an invoice credit of its prepayment.