Enbridge Pipelines (Midla) Inc.
Fourth Revised Volume No. 1
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Effective Date: 10/01/2001, Docket: GT01- 30-000, Status: Effective
Original Sheet No. 185 Original Sheet No. 185 : Effective
exist as an ongoing business entity.
(e) Customers with an ongoing business relationship with
Pipeline shall have no delinquent balances outstanding for
services provided previously by Pipeline, and Customer must
have paid its account according to the established terms and
not made deductions or withheld payment for claims not
authorized by contract.
(f) Customer shall confirm in writing that no significant
collection lawsuits or judgments are outstanding which would
materially affect Customer's ability to remain solvent as a
business entity.
26.2 Upon notification by Pipeline that Customer has failed to satisfy
the credit criteria or subsequently during the term of the Service
Agreement no longer satisfies the credit criteria, such Customer
may still obtain credit approval by Pipeline if it elects to
provide one of the following:
(a) an advance deposit;
(b) a standby irrevocable letter of credit;
(c) security interest in collateral found to be satisfactory to
Pipeline; or
(d) a guarantee, acceptable to Pipeline, by another party or
entity which satisfies credit appraisal.
Such advance deposit, standby irrevocable letter of credit,
security interest or guarantee shall at all times equal an amount
equivalent to three (3) months of transportation (or sales if
applicable) at a one hundred percent (100%) load factor of the
requested MDQ at the maximum applicable unit rate hereunder. If
Customer's credit standing ceases to meet Pipeline's credit
requirements during the period of service, then Pipeline has the
right to require security or a deposit as specified herein. If
security or a deposit is not tendered in a timely period as
reasonably determined by Pipeline, then