Cove Point LNG Limited Partnership

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 06/14/2000, Docket: RP00-389-000, Status: Effective

Original Sheet No. 120 Original Sheet No. 120 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

6. OPERATING CONDITIONS (Continued)

 

(e) Creditworthiness of Buyer. (Continued)

 

(ii) Operator may require assurance of payment for any service under this Tariff

requested by an insolvent or uncreditworthy Buyer. Such a Buyer may receive

or continue to receive service if it provides adequate assurance of payment for

service within fifteen (15) days after the date of written demand by Operator.

Adequate assurance of payment may include:

 

(1) a deposit with Operator of an amount equal to two (2) months of

Reservation and estimated Commodity charges for the service, as set forth

in the applicable Service Agreement, provided that such deposit may be

applied by Operator to satisfy a delinquent account;

 

(2) advance payment for service at the time service is scheduled;

 

(3) an irrevocable letter of credit from a creditworthy financial

institution;

 

(4) a guarantee from a creditworthy entity; or

 

(5) a surety bond from an acceptable, creditworthy insurance company.

 

(iii) Operator may at any time re-evaluate the creditworthiness of Buyer and demand

adequate assurances of payment if Operator determines that Buyer has in any

respect become uncreditworthy. Circumstances under which Operator may re-

evaluate Buyer's creditworthiness include, but are not limited to, a filing by

Buyer for bankruptcy or a submission to bankruptcy or similar federal or state

proceedings, an adverse change in Buyer's payment practices, or a

reorganization of Buyer's business structure. If Operator, following such a

re-evaluation, makes an adverse preliminary creditworthiness determination, and

Buyer is current in its payments to Operator and otherwise has a good credit

history with Operator, Buyer will be given notice of such adverse determination

and be allowed ten (10) days to submit data demonstrating its continued

creditworthiness before Operator will make a final determination of

creditworthiness and, if adverse, demand adequate assurance of payment.

Operator may at any time withdraw or revise its demand for adequate assurance

of payment or extend its due date.