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