TransColorado Gas Transmission Company

Original Volume No. 1

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Effective Date: 05/15/2000, Docket: GT00- 25-000, Status: Effective

First Revised Sheet No. 255 First Revised Sheet No. 255 : Superseded

Superseding: Original Sheet No. 255

GENERAL TERMS AND CONDITIONS

 

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 composition of Shipper's debts

under the federal Bankruptcy Act or any other applicable federal or state

law, or the appointment of a receiver, liquidator, assignee, trustee,

sequestrator (or other similar official) of the assets of Shipper or the

winding-up or liquidation of Shipper's affairs.