W T G Hugoton, LP

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

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.