Tennessee Gas Pipeline Company


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Effective Date: 09/01/2005, Docket: RP05-452-000, Status: Effective

First Revised Sheet No. 405.02 First Revised Sheet No. 405.02 : Effective

Superseding: 2nd Sub Original Sheet No. 405.02






equal the value of one (1) month of payments under Shipper's service

agreement(s) with Transporter, to be provided within five (5) business

days from the day Transporter notifies the Shipper that Shipper has lost

its creditworthiness status, and the next three (3) months of payments,

to be provided within thirty (30) days from the day Transporter notified

the Shipper that the Shipper has lost its creditworthiness status. The

credit assurance may take one of the following forms, at Shipper's



(a) an irrevocable letter of credit to Transporter, satisfactory to

Transporter, verifying the Shipper's creditworthiness;


(b) an estimate of its transportation requirements in advance and a

prepayment in advance for this service on Transporter's system;


(c) a grant to Transporter of a security interest in collateral, the

value of which is mutually agreed upon by Transporter and



(d) a guarantee by another person or entity which satisfies

Transporter's credit appraisal; or


(e) other mutually agreeable forms and value of credit assurances.


Unless otherwise agreed, the credit assurances must at all times maintain

a value specified above equal to the highest estimated charges during the

term of the service agreement. Any prepayment held by Transporter

pursuant to Section 4.5(b) above shall accrue interest at the rate

specified in Section 154.501(d) of the Commission's regulations.


If Shipper fails to pay any outstanding balance and/or provide the credit

assurance within the specified time period, Transporter may immediately

suspend service to Shipper. Without waiver of any rights Transporter may

otherwise have under any and all service agreements with Shipper including,

but not limited to, the right to sue Shipper for unmitigated damages

resulting from Shipper's breach of contract, Transporter will not charge

Shipper for service during the period of suspension of service. In

addition, Transporter will provide at least thirty (30) days written notice

to Shipper, Releasing Shipper, if any, and the Commission that it will

terminate service to Shipper if Shipper fails to pay the outstanding

balance and/or provide the required credit assurance.


To the extent that Transporter suspends or terminates the service of a

Replacement Shipper, Transporter shall provide within a reasonably

proximate time notice to the Replacement Shipper and Releasing Shipper

via e-mail and facsimile.