GENERAL TERMS AND CONDITIONS

(continued)


 


 

(c) Pipeline shall have no obligation to construct new

facilities to provide transportation service to any new

Delivery Point(s) or from any new Receipt Point(s).


 

2.4 If requesting firm service, including service at discounted rates or

Negotiated Rates, Shipper shall make a prepayment by wire transfer

in an amount equal to the maximum reservation rate as stated on

Pipeline's effective rate Sheet No. 6 for one Month's service at the

levels specified in Shipper's Service Request. The prepayment shall

be applied to the first Month's invoice or refunded in accordance

with the applicable rate schedule. A successful bidder shall pay

the applicable reservation payment for firm service awarded through

an open season.


 

2.5 Creditworthiness. Pipeline shall not be required to (i) execute a

Transportation Service Agreement providing for service under the

applicable Rate Schedule for any Shipper who fails to meet

Pipeline's standards for creditworthiness, or (ii) initiate service

for a Shipper who fails to meet Pipeline's standards for

creditworthiness, or (iii) continue transportation service for any

Shipper who is or has become insolvent or who, at Pipeline's

request, fails within a reasonable period to demonstrate

creditworthiness pursuant to Pipeline's standards. For purposes

herein, the determination of Shipper's creditworthiness shall be

based upon: (i) a credit rating of investment grade, defined as a

rating of at least "BBB-" by Standard & Poor's Corporation, or a

rating of at least "Baa3" by Moody's Investors Service, Inc. or (ii)

if Shipper is not rated by Standard & Poor's or Moody's rate

methodology, criteria and ratios which are generally acceptable in

the natural gas industry. In the event that Pipeline determines

that Shipper does not have an acceptable rating as set forth above,

Shipper may, at its own expense, obtain a private rating from

Standard & Poor's or Moody's, or as an alternative, request that an

independent accountant or an independent financial consultant,

mutually acceptable to Shipper and Pipeline, prepare an equivalent

evaluation based on the financial rating methodology, criteria and

ratios generally acceptable in the natural gas industry as published

by the above rating agencies from time to time.


 

Additionally, Pipeline may request from Shipper the following

information, and Shipper shall provide the response in a time frame

determined by Pipeline: