Columbia Gulf Transmission Company
Second Revised Volume No. 1
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Effective Date: 10/19/2006, Docket: RP06-596-000, Status: Effective
Fourth Revised Sheet No. 172 Fourth Revised Sheet No. 172 : Effective
Superseding: Third Revised Sheet No. 172
GENERAL TERMS AND CONDITIONS (Continued)
9.6 Loss of Creditworthiness
(a) Transporter may at any time re-evaluate the creditworthiness of Shipper and demand adequate
assurance of payment or additional adequate assurances of payment if Transporter determines that Shipper has
in any respect become uncreditworthy. Circumstances under which Transporter may re-evaluate Shipper's
creditworthiness include, but are not limited to, a filing by Shipper for bankruptcy or a submission to
bankruptcy or similar federal or state proceedings, an adverse change in Shipper's payment practices, a
reorganization of Shipper's business structure, an assignment of Shipper's Service Agreements, or a request by
Shipper for increased service. If Transporter, following such a re-evaluation, makes an adverse preliminary
creditworthiness determination, and Shipper is current in its payments to Transporter and otherwise has a good
credit history with Transporter, Shipper will be given notice of such adverse determination and be allowed 10
days to submit data demonstrating its continued creditworthiness before Transporter will make a final
determination of creditworthiness and, if adverse, demand adequate assurance of payment. Transporter may at
any time withdraw or revise its demand for adequate assurance of payment or extend its due date.
(b) If the Transporter requests additional information to be used for credit evaluation after
the initiation of service, the Transporter, contemporaneous with the request, should provide its reason(s) for
requesting the additional information to the Shipper and designate to whom the response should be sent. The
Transporter and the Shipper may mutually agree to waive the requirements of this standard.
(c) Upon receipt of either an initial or follow-up request from the Transporter for information
to be used for creditworthiness evaluation, the Shipper’s authorized representative(s) should acknowledge
receipt of the Transporter’s request. The Transporter and the Shipper may mutually agree to waive the
requirements of this standard.
(d) The Shipper’s authorized representative(s) should respond to the Transporter’s request for
credit information, as allowed by the Transporter’s tariff, on or before the due date specified in the
request. The Shipper should provide all the credit information requested by the Transporter or provide the
reason(s) why any of the requested information was not provided.
(e) Upon receipt from the Shipper of all credit information provided pursuant to the applicable
NAESB WGQ standards, the Transporter should notify the Shipper’s authorized representative(s) that it has
received such information. The Transporter and the Shipper may mutually agree to waive the requirements of
(f) The Shipper should designate up to two representatives who are authorized to receive
notices regarding the Shipper’s creditworthiness, including requests for additional information, pursuant to
the applicable NAESB WGQ standards and should provide to the Transporter the Internet e-mail addresses of such
representatives prior to the initiation of service. Written requests and responses should be provided via
Internet E-mail, unless otherwise agreed to by the parties. The obligation of the Transporter to provide
creditworthiness notifications is waived until the above requirement has been met. The Shipper should manage
internal distribution of any creditworthiness notices that are received.
The Transporter should designate on its Internet website or in written notices to the
Shipper, the Internet e-mail addresses of up to two representatives who are authorized to receive notices
regarding the Shipper’s creditworthiness. The Shipper’s obligation to provide confirmation of receipt is met
by sending such confirmation to such representatives, and the Transporter should manage internal distribution
of any such confirmations.