TransColorado Gas Transmission Company

Original Volume No. 1

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Effective Date: 12/05/1996, Docket: CP90-1777-009, Status: Effective

Original Sheet No. 73 Original Sheet No. 73 : Superseded

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

provided for in Section 6. Shipper may not pledge or charge its

interest under a service agreement under the provisions of any

mortgage, deed of trust, indenture, security agreement, loan

agreement or similar instrument that it executes without the

consent in writing of TransColorado. No person succeeding by

purchase, merger or consolidation to the properties of Shipper

shall be entitled to any part of the interest of Shipper under its

service agreement without the written consent of TransColorado.

 

18. CREDITWORTHINESS

 

18.1 TransColorado shall not be required to initiate, perform or to

continue any transportation service under any rate schedule for

Shipper if Shipper is or has become insolvent or fails within 30

days of TransColorado's request for credit information to

demonstrate creditworthiness.

 

18.2 Shipper must demonstrate evidence of creditworthiness by providing

the following:

 

(a) Primary bank references;

 

(b) Shipper's year-end audited financial statement and its last

quarterly report;

 

(c) A credit report from a credit reporting agency that shows

that Shipper pays its commercial obligations within a

reasonable period.

 

18.3 Notwithstanding subparagraph 18.2(c), if Shipper is found to lack

creditworthiness, Shipper may receive service if it prepays for

such service or furnishes a letter of credit or other good and

sufficient security, as determined by TransColorado in its

reasonable discretion, in an amount equal to the cost of

performing the service requested by Shipper for up to a three-

month period.

 

18.4 The inability of Shipper to pay for the requested service or

insolvency of Shipper may be evidenced by the filing by Shipper or

any parent or affiliated company (collectively referred to in this

paragraph as "Shipper") of a petition in bankruptcy or the entry

of a decree or order by a court of competent jurisdiction

adjudging Shipper bankrupt or insolvent, or approving as properly

filed a petition seeking reorganization, arrangement, adjustment

or