Mid Louisiana Gas Company

Third Revised Volume No. 1

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Effective Date: 09/01/1993, Docket: RS92- 20-004, Status: Effective

Original Sheet No. 181 Original Sheet No. 181 : Effective

 

26. CREDIT EVALUATION

 

26.1 Pipeline's acceptance of a request for service is contingent

upon Customer's satisfying a credit appraisal by Pipeline.

Pipeline shall apply, on a non-discriminatory basis,

consistent financial evaluation standards to determine the

acceptability of Customer's overall financial condition. Such

credit appraisal and any further or ongoing credit appraisal

as may be necessary shall be based upon some, part or all of

the following information and criteria:

 

(a) Customer shall provide current financial statements,

annual reports, 10-K reports or other filings with

regulatory agencies which discuss Customer's financial

status; a list of all corporate affiliates, parent

companies and subsidiaries; and any reports from credit

reporting and bond rating agencies which are available.

 

(b) Customer shall provide a bank reference and at least two

(2) trade references. The results of reference checks

and any credit reports submitted in (a) above must show

that Customer's obligations are being paid on a

reasonably prompt basis.

 

(c) Customer shall confirm in writing that Customer is not

operating under any chapter of the bankruptcy laws and

is not subject to liquidation or debt reduction

procedures under state laws, such as an assignment for

the benefit of creditors, or any informal creditors'

committee agreement. An exception can be made for a

Customer who is a debtor in possession operating under

Chapter 11 of the Federal Bankruptcy Act but only with

adequate assurance that the service billing will be paid

promptly as a cost of administration under the federal

court's jurisdiction.

 

(d) Customer shall confirm in writing that Customer is not

aware of any change in business conditions which would

cause a substantial deterioration in its financial

condition, a condition of insolvency or the inability to