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First Revised Sheet No. 91 First Revised Sheet No. 91 : Superseded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.