Common use of Creditworthiness Clause in Contracts

Creditworthiness. Neither the Company nor the Shipper shall be required to commence service or continue with service, subject to the following timing provisions, to continue under this Storage or Transportation Service Agreement if either the Shipper or the Company (a) is or has become insolvent; (b) has applied for bankruptcy under Chapter 11 of the Bankruptcy Code, or which is subject to similar proceedings under state or federal law; or no longer meets the credit worthiness standards specified in Section 14.5 of the Agreement or (c) when requested by the non-affected party to demonstrate creditworthiness, fails to do so in requesting party’s reasonable judgment, in light of previous payment or performance experience and the prudent credit analysis of information available; provided, however, if the Shipper is the affected party and is receiving service they shall continue to receive service for a period of fifteen (15) days after written notice by Company of any such circumstance, and shall continue thereafter to receive service if, within such fifteen (15) day notice period, such Shipper (a) deposits with Company and maintains, on account, an amount which would be due for three (3) months service at the full Maximum Daily Withdrawal Quantity, or the full Maximum Daily Transportation Quantity, including an amount of the current gas imbalance plus, an amount equal to the three (3) highest cashout payments, if any, incurred during the previous twelve months, or (b) furnishes good and sufficient security, which may include an acceptable standby letter of credit, or monthly prepayment agreement or other security as reasonably determined by Company, of a continuing nature and in an amount equal to such amounts which would be due for service. If such payment on account or payment security is not received within such fifteen (15) day notice period, Company may, without waiving any rights or remedies it may have, suspend further service for a period of ten (10) days. If such payment on account or a payment security is not received within such ten (10) day suspension period, then Company shall no longer be obligated to continue to provide service to such Shipper. Further, if such payment on account or a payment security is not received within sixty (60) days after the end of such suspension period, Company may terminate its obligations to provide service under all agreements between Shipper and Company, which termination shall not affect any of Company’s claims or remedies it may have under any Storage or Transportation Service Agreement. If the Company is the affected party and is providing service, Shipper will only be obligated to continue service for a period of fifteen (15) days after written notice by Company of any such circumstance but may opt to continue service beyond fifteen (15) days at their sole discretion.

Creditworthiness. Neither the Company nor the Shipper Bay Gas shall not be required to commence service or continue with serviceor, subject to the following timing provisions, to continue to provide service under this a Storage or Transportation Service Agreement if either the Shipper or the Company with any Shipper, that (a) is or has become insolvent; (b) has applied for bankruptcy under Chapter 11 of the Bankruptcy Code, or which is subject to similar proceedings under state or federal law; or no longer meets the credit worthiness standards specified in Section 14.5 of the Agreement or (c) when requested by the non-affected party Bay Gas to demonstrate creditworthiness, fails to do so in requesting party’s Bay Gas' reasonable judgment, in light of previous payment or performance experience and the prudent credit analysis of information available; provided, however, if the that any such Shipper is the affected party and that is receiving service they shall continue to receive service for a period of fifteen (15) days after written notice by Company Bay Gas of any such circumstance, and shall continue thereafter to receive service if, within such fifteen (15) day notice period, such Shipper (a) deposits with Company Bay Gas and maintains, on account, an amount which would be due for three (3) months service at the full Maximum Daily Withdrawal Quantity, or the full Maximum Daily Transportation Quantity, including an amount of the current gas imbalance plus, an amount equal to the three (3) highest cashout payments, if any, incurred during the previous twelve months, or (b) furnishes good and sufficient security, which may include an acceptable standby letter of credit, or monthly prepayment agreement or other security as reasonably determined by CompanyBay Gas, of a continuing nature and in an amount equal to such amounts which would be due for service. If such payment on account or payment security is not received within such fifteen (15) day notice period, Company Bay Gas may, without waiving any rights or remedies it may have, suspend further service for a period of ten (10) days. If such payment on account or a payment security is not received within such ten (10) day suspension period, then Company Bay Gas shall no longer be obligated to continue to provide service to such Shipper. Further, if such payment on account or a payment security is not received within sixty (60) days after the end of such suspension period, Company Bay Gas may terminate its obligations to provide service under all agreements between Shipper and CompanyBay Gas, which termination shall not affect any of Company’s Bay Gas' claims or remedies it may have under any Storage or Transportation Service Agreement. If the Company is the affected party and is providing service, Shipper will only be obligated to continue service for a period of fifteen (15) days after written notice by Company of any such circumstance but may opt to continue service beyond fifteen (15) days at their sole discretion.

Creditworthiness. Neither the Company nor the Shipper Bay Gas shall not be required to commence service or continue with serviceor, subject to the following timing provisions, to continue to provide service under this a Storage or Transportation Service Agreement if either the Shipper or the Company with any Shipper, that (a) is or has become insolvent; (b) has applied for bankruptcy under Chapter 11 of the Bankruptcy Code, or which is subject to similar proceedings under state or federal law; or no longer meets the credit worthiness standards specified in Section 14.5 of the Agreement or (c) when requested by the non-affected party Bay Gas to demonstrate creditworthiness, fails to do so in requesting party’s Bay Gas’ reasonable judgment, in light of previous payment or performance experience and the prudent credit analysis of information available; provided, however, if the that any such Shipper is the affected party and that is receiving service they shall continue to receive service for a period of fifteen (15) days after written notice by Company Bay Gas of any such circumstance, and shall continue thereafter to receive service if, within such fifteen (15) day notice period, such Shipper (a) deposits with Company Bay Gas and maintains, on account, an amount which would be due for three (3) months service at the full Maximum Daily Withdrawal Quantity, or the full Maximum Daily Transportation Quantity, including an amount of the current gas imbalance plus, an amount equal to the three (3) highest cashout payments, if any, incurred during the previous twelve months, or (b) furnishes good and sufficient security, which may include an acceptable standby letter of credit, or monthly prepayment agreement or other security as reasonably determined by CompanyBay Gas, of a continuing nature and in an amount equal to such amounts which would be due for service. If such payment on account or payment security is not received within such fifteen (15) day notice period, Company Bay Gas may, without waiving any rights or remedies it may have, suspend further service for a period of ten (10) days. If such payment on account or a payment security is not received within such ten (10) day suspension period, then Company Bay Gas shall no longer be obligated to continue to provide service to such Shipper. Further, if such payment on account or a payment security is not received within sixty (60) days after the end of such suspension period, Company Bay Gas may terminate its obligations to provide service under all agreements between Shipper and CompanyBay Gas, which termination shall not affect any of Company’s Bay Gas’ claims or remedies it may have under any Storage or Transportation Service Agreement. If the Company is the affected party and is providing service, Shipper will only be obligated to continue service for a period of fifteen (15) days after written notice by Company of any such circumstance but may opt to continue service beyond fifteen (15) days at their sole discretion.

Creditworthiness. Neither the Company nor the Shipper shall not be required to commence service or continue with serviceor, subject to the following timing provisions, to continue to provide service under this a Storage or Transportation Service Agreement if either the Shipper or the Company with any Shipper, that (a) is or has become insolvent; (b) has applied for bankruptcy under Chapter 11 of the Bankruptcy Code, or which is subject to similar proceedings under state or federal law; or no longer meets the credit worthiness standards specified in Section 14.5 15.5 of the Agreement or (c) when requested by the non-affected party Company to demonstrate creditworthiness, fails to do so in requesting partyCompany’s reasonable judgment, in light of previous payment or performance experience and the prudent credit analysis of information available; provided, however, if the that any such Shipper is the affected party and that is receiving service they shall continue to receive service for a period of fifteen (15) days after written notice by Company of any such circumstance, and shall continue thereafter to receive service if, within such fifteen (15) day notice period, such Shipper (a) deposits with Company and maintains, on account, an amount which would be due for three (3) months service at the full Maximum Daily Withdrawal Quantity, or the full Maximum Daily Transportation Quantity, including an amount of the current gas imbalance plus, an amount equal to the three (3) highest cashout payments, if any, incurred during the previous twelve months, or (b) furnishes good and sufficient security, which may include an acceptable standby letter of credit, or monthly prepayment agreement or other security as reasonably determined by Company, of a continuing nature and in an amount equal to such amounts which would be due for service. If such payment on account or payment security is not received within such fifteen (15) day notice period, Company may, without waiving any rights or remedies it may have, suspend further service for a period of ten (10) days. If such payment on account or a payment security is not received within such ten (10) day suspension period, then Company shall no longer be obligated to continue to provide service to such Shipper. Further, if such payment on account or a payment security is not received within sixty (60) days after the end of such suspension period, Company may terminate its obligations to provide service under all agreements between Shipper and Company, which termination shall not affect any of Company’s claims or remedies it may have under any Storage or Transportation Service Agreement. If the Company is the affected party and is providing service, Shipper will only be obligated to continue service for a period of fifteen (15) days after written notice by Company of any such circumstance but may opt to continue service beyond fifteen (15) days at their sole discretion.

Creditworthiness. Neither the Company nor the Shipper shall not be required to commence service or continue with serviceor, subject to the following timing provisions, to continue to provide service under this a Storage or Transportation Service Agreement if either the Shipper or the Company with any Shipper, that (a) is or has become insolvent; (b) has applied for bankruptcy under Chapter 11 of the Bankruptcy Code, or which is subject to similar proceedings under state or federal law; or no longer meets the credit worthiness standards specified in Section 14.5 of the Agreement or (c) when requested by the non-affected party Company to demonstrate creditworthiness, fails to do so in requesting partyCompany’s reasonable judgment, in light of previous payment or performance experience and the prudent credit analysis of information available; provided, however, if the that any such Shipper is the affected party and that is receiving service they shall continue to receive service for a period of fifteen (15) days after written notice by Company of any such circumstance, and shall continue thereafter to receive service if, within such fifteen (15) day notice period, such Shipper (a) deposits with Company and maintains, on account, an amount which would be due for three (3) months service at the full Maximum Daily Withdrawal Quantity, or the full Maximum Daily Transportation Quantity, including an amount of the current gas imbalance plus, an amount equal to the three (3) highest cashout payments, if any, incurred during the previous twelve months, or (b) furnishes good and sufficient security, which may include an acceptable standby letter of credit, or monthly prepayment agreement or other security as reasonably determined by Company, of a continuing nature and in an amount equal to such amounts which would be due for service. If such payment on account or payment security is not received within such fifteen (15) day notice period, Company may, without waiving any rights or remedies it may have, suspend further service for a period of ten (10) days. If such payment on account or a payment security is not received within such ten (10) day suspension period, then Company shall no longer be obligated to continue to provide service to such Shipper. Further, if such payment on account or a payment security is not received within sixty (60) days after the end of such suspension period, Company may terminate its obligations to provide service under all agreements between Shipper and Company, which termination shall not affect any of Company’s claims or remedies it may have under any Storage or Transportation Service Agreement. If the Company is the affected party and is providing service, Shipper will only be obligated to continue service for a period of fifteen (15) days after written notice by Company of any such circumstance but may opt to continue service beyond fifteen (15) days at their sole discretion.