Florida Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 02/01/1994, Docket: RP94- 82-000, Status: Effective

First Revised Sheet No. 136 First Revised Sheet No. 136 : Superseded

Superseding: Original Sheet No. 136

GENERAL TERMS AND CONDITIONS (continued)

 

(2) In the event Shipper fails to correct the noncompliance and

provide assurances acceptable to Transporter and its

creditor within twenty (20) days of notice, including, but

not limited to, letters of credit, Transporter may suspend,

or, if consistent with the terms of the Service Agreement

between Shipper and Transporter, terminate service ten (10)

days after expiration of the twenty (20) day period

specified above. Transporter shall offer any firm capacity

rights terminated pursuant to this provision in accordance

with Section 17B. Transporter shall notify Shipper and the

Commission in writing of its decision to suspend or

terminate service.

 

16. CREDITWORTHINESS

 

(a) Transporter shall not be required to (i) execute a Transportation

Service Agreement providing for service under the applicable Rate

Schedule for any Shipper who fails to meet Transporter's standards

for creditworthiness, or (ii) initiate service for a Shipper who

fails to meet Transporter's standards for creditworthiness, or (iii)

continue transportation service for any Shipper who is or has become

insolvent or who, at Transporter's request, fails within a reasonable

period to demonstrate creditworthiness pursuant to Transporter's

standards.

 

For purposes herein, the determination of Shipper's creditworthiness

shall be based upon: (i) a credit rating of investment grade, defined

as a rating of at least "BBB-" by Standard & Poor's Corporation, or a

rating of at least "Baa3" by Moody's Investors Service, Inc. or (ii)

if Shipper is not rated by Standard & Poor's or Moody's rate

methodology, criteria and ratios which are generally acceptable in

the natural gas industry. In the event that Transporter determines

that Shipper does not have an acceptable rating as set forth above,

Shipper may, at its own expense, obtain a private rating from

Standard & Poor's or Moody's, or as an alternative, request that an

independent accountant or an independent financial consultant,

mutually acceptable to Shipper and Transporter, prepare an equivalent

evaluation based on the financial rating methodology, criteria and

ratios generally acceptable in the natural gas industry as published

by the above rating agencies from time to time.

 

(b) To permit Transporter to conduct a creditworthiness review, a Shipper

shall, upon request by Transporter, render to Transporter: (i)

complete and current financial statements, including annual reports,

10K reports or other filings with regulatory agencies, prepared in

accordance with generally accepted accounting principles, or for non-

U.S.-based Shippers, prepared in accordance with equivalent

principles; (ii) a list of corporate affiliates, parent companies and