Ozark Gas Transmission System
First Revised Volume No. 1
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Effective Date: 01/01/1996, Docket: RP95-458-000, Status: Effective
First Revised Sheet No. 91 First Revised Sheet No. 91 : Superseded
Superseding: Substitute Original Sheet No. 91
RATE SCHEDULE FTS
FIRM TRANSPORTATION SERVICE
(Continued)
5. CREDITWORTHINESS
5.1 Prior to execution of an FTS Agreement, Shipper
shall be required to establish creditworthiness
with Transporter. Transporter shall not be
required to execute an FTS Agreement on behalf
of any Shipper who fails to meet Transporter's
standard for creditworthiness. Any Shipper
failing to meet Transporter's standard for
creditworthiness may still receive service under
this FTS Rate Schedule if Shipper furnishes, and
maintains for the term of the FTS Agreement,
acceptable to Transporter either (i) a guarantor
letter from a creditworthy party, or (ii) the
following:
(a) a standby letter of credit from a major bank
in an amount equal to the charge for
performing the service for Shipper at the
contracted MDQ for three months; or
(b) an escrow account for all Shipper's revenues
from gas sales associated with the
transportation service to cover
transportation charges for three months.
Transporter shall not be required to initiate
firm service under an FTS Agreement to a Shipper
who becomes insolvent.