Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 05/01/1997, Docket: RP97- 61-002, Status: Effective

Original Sheet No. 237A Original Sheet No. 237A : Effective

 

GENERAL TERMS AND CONDITIONS

(continued)

 

14.5 Security. Transporter shall not be required to

perform or to continue service under this Tariff on

behalf of any Shipper who is or has become insolvent

or who, at Transporter's request, at any time fails

within a reasonable period to maintain and

demonstrate creditworthiness, including, without

limitation, the ability to pay all amounts invoiced

but not paid because of a claimed error pursuant to

this Section 14; provided, however, such Shipper may

receive service under this Tariff if Shipper provides

a deposit for such service or otherwise furnishes

good and sufficient security, as determined by

Transporter in its reasonable discretion, which at

all times shall be sufficient to cover up to the

amount which would be invoiced to Shipper if one

hundred percent (100%) of the Contract Demand,

Maximum Contract Quantity, Contract Delivery Demand

and/or the requested or effective quantities for

storage services, as applicable, were provided for

service to Shipper during a period of up to six (6)

Service Months. For purposes of this Tariff, the

insolvency of a Shipper shall be evidenced by the

filing of such Shipper or any parent entity or

guarantor thereof (for purposes of this section, a

reference to Shipper shall include any applicable

parent entity or guarantor) of a voluntary petition

in bankruptcy or the entry of a decree or order by a

court having jurisdiction in the premises adjudging

Shipper a bankrupt or insolvent, or approving as

properly filed a petition seeking reorganization,

arrangement, adjustment or composition of or in

respect of Shipper under the Federal Bankruptcy Act

or any other applicable federal or state law, or

appointing a receiver, liquidator, assignee, trustee,

sequestrator (or other similar official) of Shipper