Petal Gas Storage Company

Original Volume No. 1

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Effective Date: 12/18/1993, Docket: CP93- 69-002, Status: Effective

Original Sheet No. 106 Original Sheet No. 106 : Effective

 

GENERAL TERMS AND CONDITIONS

(continued)

 

 

(ii) Maximum Daily Withdrawal Quantity

(MDWQ) (stated in MMBtu/day) and at which Point(s) of

Delivery.

 

(iii) Maximum Daily Injection Quantity (MDIQ)

(stated in MMBtu/day) and at which Point(s) of Receipt.

 

(e) Term of service, including the date service is

requested to commence and the date service is requested to

terminate.

 

(f) Evidence of creditworthiness. Acceptance of a

storage service request is contingent upon a satisfactory

credit appraisal by Petal. Such credit appraisal must meet

the following criteria:

 

(i) Customer shall provide (a) current

financial statements, annual reports, 10-K reports or other

filings with regulatory agencies, (b) a list of all corporate

affiliates, parent companies and subsidiaries, and (c) any

reports from credit reporting agencies which are available.

Petal shall apply consistent evaluation practices to determine

the acceptability of the Customer's overall financial

condition, working capital, and profitability trends.

 

(ii) A bank reference and at least two trade

references must be provided by Customer. The results of

reference checks and any credit reports must show that

Customer's obligations are being paid on a prompt basis.

 

(iii) Customer must not be operating under

any chapter of the bankruptcy laws and must not be subject to

liquidation or debt reduction procedures under the 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 assurances that billings will be paid promptly as

cost of administration under the federal court's jurisdiction.

 

(iv) Customer must not be subject to the

uncertainty of pending liquidation or regulatory proceedings

in state or federal courts which could cause a substantial

deterioration in its financial condition, which could cause a