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. 182 Original Sheet No. 182 : 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