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