Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 10/01/1994, Docket: MT94- 24-000, Status: Effective

First Revised Sheet No. 453 First Revised Sheet No. 453 : Effective

Superseding: Original Sheet No. 453

GENERAL TERMS AND CONDITIONS

(Continued)

 

3.3 Pipeline's acceptance of a request for service under an

Open-access Rate Schedule is contingent upon Customer 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 on-going credit appraisal as may be necessary shall be based upon

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. Pipeline shall

determine the acceptability of the Customer's overall

financial condition;

 

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

trade references. The results of reference checks and any

credit reports submitted in 3.3(A) 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 XI 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

exist as an ongoing business entity;

 

(E) If Customer has an on-going business relationship with

Pipeline, no delinquent balances should be outstanding for

services made previously by Pipeline and Customer must have

paid its account during the past according to the

established terms and not made deductions or withheld

payment for claims not authorized by contract; and