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First Revised Sheet No. 92 First Revised Sheet No. 92 : Superseded

Superseding: Original Sheet No. 92

 

RATE SCHEDULE FTS

FIRM TRANSPORTATION SERVICE

(Continued)

 

5.2 The determination of Shipper's creditworthiness

shall be based upon:

 

(a) Cash flow consideration: comparison of

Shipper's estimated share of the minimum

bill, as set forth in Section 3.2 of this

FTS Rate Schedule during the first year of

service with information derived from

Shipper's financial statements.

 

(b) Balance sheet consideration: comparison of

the net present value of Shipper's estimated

total financial obligation to Transporter

over the term of the requested FTS Agreement

with information derived from Shipper's

financial statements.

 

(c) Credit/financial history: any credit

information obtained from banks or other

third parties will be used in the overall

evaluation process.

 

5.3 For purposes of Section 5.1 of this FTS Rate

Schedule, the insolvency of a Shipper shall be

evidenced by the filing by Shipper or its parent

of a voluntary petition in bankruptcy or the

entry of a decree or order by a court having

jurisdiction adjudging the Shipper as bankrupt or

insolvent, or approving, as properly filed, a

petition seeking reorganization, arrangement,

adjustment or composition of or in respect to the

Shipper under applicable Federal or state laws,

or appointing a receiver, liquidator, assignee,

trustee, sequestrator (or other similar official)

of the Shipper or of any substantial part of its

property, or the ordering of the winding-up or

liquidation of its affairs, with said order or

decree continuing unstayed and in effect for a

period of sixty (60) consecutive days.