Enbridge Pipelines (AlaTenn) L. L. C.
FOURTH REVISED VOLUME NO. 1
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Effective Date: 09/01/2005, Docket: RP05-442-000, Status: Effective
Original Sheet No. 162B Original Sheet No. 162B : Effective
GENERAL TERMS AND CONDITIONS (continued)
(6) If Shipper has an ongoing business relationship with
Transporter or any of its affiliates, no delinquent
balances may be consistently outstanding for natural
gas sales, storage or transportation services
rendered previously to Shipper and Shipper must have
paid its account during the past according to the
established terms and not made deductions or
withheld payment for claims, absent the posting of a
surety bond pending resolution of the disputed
amount, unless authorized by contract.
(7) No significant collection lawsuits or judgments are
outstanding which would seriously reflect upon the
business entity's ability to remain solvent.
(b) AlaTenn shall not be required to perform or to continue to
perform service under the applicable rate schedules on
behalf of any Shipper who is or has become insolvent, or
who fails to satisfy the above credit criteria. However,
such Shipper may still obtain service hereunder if it
elects one of the following options:
(1) Payment in advance for three (3) months' service.
(2) A standby irrevocable letter of credit drawn upon a
bank acceptable to AlaTenn;
(3) Security interest in collateral provided by the
Shipper found to be satisfactory to AlaTenn; or
(4) Guarantee by a person or another entity which does
satisfy the credit appraisal.
(c) For the purpose herein, the insolvency of a Shipper shall
be evidenced by the filing by Shipper or any parent entity
thereof (hereinafter collectively referred to as "The
Shipper") of a voluntary petition in bankruptcy or the
entry of a decree or order by a court having jurisdiction
in the premises adjudging the Shipper bankrupt or
insolvent. Insolvency, for the purposes herein, shall
also include approval by any such court of a petition
seeking reorganization, arrangement, adjustment or
composition of or in respect of the Shipper under the
Federal Bankruptcy Act or any other applicable federal or
state law, 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