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. 107 Original Sheet No. 107 : Effective

 

GENERAL TERMS AND CONDITIONS

(continued)

 

 

condition of insolvency, or which could impair the ability of

the Customer to continue to exist as an ongoing business

entity.

 

(v) If Customer has an ongoing business

relationship with Petal, no delinquent balances shall be

consistently outstanding for natural gas storage services

provided previously by Petal. Customer shall have paid its

account for past periods according to established contract

terms, not having made deductions or withheld payment not

authorized by contract.

 

(vi) No significant collection lawsuits or

judgments shall be outstanding which would seriously reflect

upon the business entity's ability to remain solvent.

 

(g) If a Customer fails to satisfy the credit

criteria, such Customer may still obtain storage service

hereof if it elects one of the following options: (i) a

standby irrevocable letter of credit drawn upon a bank

acceptable to Petal, in an amount acceptable to Petal; (ii) a

security interest in collateral provided by the Customer found

to be satisfactory to Petal; or (iii) guarantee of performance

of all Petal's obligations by a person or entity which does

satisfy the credit appraisal.

 

3.5 Subsequent Information

 

(a) If any of the events or actions described in

Sections 3.4(g)(iii), 3.4(g)(iv) and 3.4(g)(vi) above, shall

be initiated or imposed during the term of service under a

storage service agreement, Customer shall provide notification

to Petal within two working days of any such initiated or

imposed event or action. Customer shall also promptly provide

such additional Customer credit information as may be

reasonably required by Petal, at any time during the term of

service under a storage service agreement, to determine

Customer's creditworthiness.

 

(b) After receipt of a request for service, Petal

may require that Customer furnish additional information as a

prerequisite to Petal offering to execute a storage service

agreement with Customer. Such information may include proof

of Customer's lawful right and title to cause the gas to be