Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 01/07/2001, Docket: RP01-182-000, Status: Effective

First Revised Sheet No. 454 First Revised Sheet No. 454 : Effective

Superseding: Original Sheet No. 454

GENERAL TERMS AND CONDITIONS

(Continued)

 

(F) Customer shall confirm in writing that no significant collection lawsuits or

judgments are outstanding which would seriously reflect upon the business

entity's ability to remain solvent.

 

3.4 Upon notification by Pipeline that a 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 pays any

outstanding balances due Pipeline for service rendered or has complied with Section

10.6 of the General Terms and Conditions with regard to such balances and 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 person or entity which satisfies

credit appraisal.

 

Such advance deposit, standby irrevocable letter of credit, security interest or

guarantee should at all times equal the amount equal to three (3) months of highest

estimated usage during the term of the service agreement. 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 prepayment as specified herein. If

security or prepayment is not tendered in a time period as reasonably determined by

Pipeline, then Pipeline is not required to continue service. If Customer is unable to

maintain credit approval, the executed service agreement shall terminate as of the

first day of the month following written notice to Customer.

 

Initial service agreements shall be subject to this Section 3.4 only with respect to

subsequent failure to satisfy the credit criteria during the term of the service

agreement.

 

3.5 A request for service shall not be deemed to have been received by Pipeline until

Pipeline has received the information required or requested under Sections 3.2 through

3.4 herein. In the event that any information provided by Customer in Sections 3.2

through 3.4 has materially changed or may materially change, Customer shall be

obligated to provide written notice of such material changes to Pipeline, or Customer

under an Initial Service Agreement shall be obligated to provide notice in the format

required by Sections 3.2 through 3.4 herein, of such material change in its ability to

meet the credit criteria set forth in Section 3.3 on and after the date of execution of

the Initial Service Agreement. If Pipeline requests additional information or

assurance in accordance with this section, and such additional information or assurance

is provided in writing by Customer within ten (10) days of Pipeline's request,

Customer's request for service will be deemed to have been received when the

information set forth in Sections 3.2 through 3.4 was initially received. Otherwise,

Customer's request for service will be