Kansas Pipeline Company
Original Volume No. 1
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Effective Date: 05/11/1998, Docket: CP96-152-015, Status: Effective
First Revised Sheet No. 213 First Revised Sheet No. 213 : Effective
Superseding: Original Sheet No. 213
GENERAL TERMS AND CONDITIONS (Continued)
made for a Shipper who is a debtor in possession
operating under Chapter XI of the Federal Bankruptcy
Act but only with adequate assurance that the service
billing shall be paid promptly as a cost of
administration under the Federal Court's jurisdiction.
(d) Shipper shall confirm in writing that it is not
subject to any uncertainty in any pending liquidation
or regulatory proceedings in state or Federal courts
Or is not aware of any change in business conditions
which could cause a substantial deterioration in its
financial condition, a condition of insolvency or the
inability to exist as an on-going business entity.
(e) If Shipper has an on-going business relationship with
Kansas Pipeline, no delinquent balances should be
outstanding for services provided previously by
Kansas Pipeline and Shipper must have paid its
account balances according to the established terms
and not made deductions or withheld payment for
claims not authorized by contract.
(f) Shipper shall confirm in writing that no significant
collection lawsuits or judgments are outstanding
which would seriously reflect upon the business
entity's ability to remain solvent.
6.3 Upon notification by Kansas Pipeline that Shipper has
failed to satisfy the credit criteria, or subsequently
during the term of the Service Agreement no longer
satisfies the credit criteria such Shipper may still
obtain credit approval by Kansas Pipeline if it elects to
provide one of the following: (a) an advance deposit equal
to the cost of performing the requested service for three (3)
months; (b) a Standby Irrevocable Letter of Credit; (c)
security interest in collateral found to be satisfactory to
Kansas Pipeline; (d) a guaranty, acceptable to Kansas
Pipeline, by another person or entity which satisfies
credit appraisal. An advance deposit, Standby
Irrevocable Letter of Credit, or security interest
should at all times equal the three highest Months of
estimated usage during the term of the Service Agreement.
6.4 If Shipper's credit standing ceases to meet Kansas
Pipeline's credit requirements during the period of
service, then Kansas Pipeline has the right to require