REQUIREMENTS FOR PROGRAM PARTICIPATION. The standards for participation in the Program shall be the creditworthiness standards specified on Sheet Nos. 37a and 37b of the Company’s tariff. Accordingly, in order to participate as an agent in the Company’s program, Agent shall, upon request, provide the Company, on a confidential basis, with balance sheet and other financial statements, and with appropriate trade and banking references. Agent also agrees to allow the Company to conduct a credit investigation as to Agent’s credit-worthiness and will pay a $50 processing fee to the Company to cover the cost of a credit evaluation. Further, if the Company determines that it is necessary, Agent agrees to maintain a cash deposit, an irrevocable letter of credit at a Company-approved bank of the Agent’s choosing, or such other financial instrument, as the Company may require during the term of this Agreement in order to assure Agent’s performance of its obligations under this Agreement. In order to assure that the value of such financial security instruments remains proportional to Agent’s potential liability under this Agreement, the required dollar amounts of such instruments shall be adjusted at the sole discretion of the Company, as customers are added to, or deleted from, Agent’s aggregation pool. Agent agrees that, in the event it defaults on its obligations under this Agreement, Company shall have the right to use such cash deposit or the proceeds from irrevocable letter of credit, or other financial instrument to satisfy Agent’s obligations under this Agreement. Such proceeds shall be used to secure additional gas supplies, including payment of the costs of the gas supplies themselves, the costs of capacity, transportation, storage, gathering and other related costs incurred in bringing those gas supplies into the Company’s system. The proceeds from such instruments shall also be used to satisfy any outstanding claims that the Company may have against Agent, including, but not limited to, interstate pipeline capacity charges, imbalance charges, cash-out charges, pipeline penalty charges, reservation charges, and any other amounts owed to the Company or amounts for which the Company is or will be responsible related to Agent’s participation in this Program. In the event Agent elects, or is forced, to terminate its participation in this Program in accordance with the provisions of this Agreement, it shall continue its obligations to maintain its financial security instrument until it has satisfied all of its outstanding claims of the Company. In addition to the above financial requirements, the Agent shall comply with all applicable provisions of Company’s tariff, including the Code of Conduct as set forth on Sheet Nos. 37 and 37a of Company’s tariff. Said tariff provisions are incorporated herein by reference. Agent acknowledges that in its capacity as an agent in this Program, it has a continuing responsibility to conduct its business in a legal and ethical manner. As a condition of this Agreement and Agent’s participation in the Program, Agent authorizes Company to verify with interstate pipelines Agent’s primary delivery point entitlements and deliveries of natural gas supplies as described in Company’s tariff Rate Schedule SVAS. Company will maintain a list of Agents who have met the Program financial and performance requirements. This list will be made available to customers upon request.
Appears in 2 contracts
Samples: Service Agreement, Service Agreement
REQUIREMENTS FOR PROGRAM PARTICIPATION. The standards for participation in the this Program shall be the creditworthiness standards specified on Sheet Nos. 37a and 37b in Section VI of the Company’s tarifftariffs. Accordingly, in order to participate as an agent Agent in the Company’s program, Aggregation Service – Option 2 Agent shall, upon request, periodically provide the Company, on a confidential basis, with a balance sheet and other financial statements, statements and with appropriate trade and banking referencespreferences. Agent also agrees to shall allow the Company to conduct a credit investigation as to Agent’s credit-worthiness 's credit worthiness. Agents providing service pursuant to Part No. 20(E)(2) in Section VI of this tariff are not required to provide bond or other financial security instrument in order to participate in this Aggregation Service program unless based upon the Company's creditworthiness assessment, the need for such financial security instrument in the amount requested by the Company is found to be reasonable and will pay a $50 processing fee necessary. The Company shall be entitled to refuse Aggregation Service if Agent does not provide the financial security instrument requested. This option is limited to those Agents whose Customers have agreed to contract terms with the Agent that provide for indemnification of the Company for any tariff charges owed to the Company to cover and arising from the cost of a credit evaluation. Further, if Agent's participation in this Aggregation Service program in the Company determines that it is necessary, Agent agrees to maintain a cash deposit, an irrevocable letter of credit at a Company-approved bank event of the Agent’s choosing, or such other financial instrument, as 's default. Such indemnification shall be demonstrated to the Company may require through Agent's Customers' affirmative election of Aggregation Service Option 2 in the Company's 'Appointment of Agent" agreement. Any tariff charges remaining unpaid by the Agent will be assessed to Customers within each Aggregation Pool on a pro rata basis based on the ratio of each Customer's gas usage to the usage of all Customers participating in that Aggregation Pool during the term of this Agreement in order to assure Agent’s performance of its obligations under this Agreement. In order to assure that month for which the value of such financial security instruments remains proportional to Agent’s potential liability under this Agreement, the required dollar amounts of such instruments shall be adjusted at the sole discretion of the Company, as customers are added to, or deleted from, Agent’s aggregation pool. Agent agrees that, in the event it defaults on its obligations under this Agreement, Company shall have the right to use such cash deposit or the proceeds from irrevocable letter of credit, or other financial instrument to satisfy Agent’s obligations under this Agreement. Such proceeds shall be used to secure additional gas supplies, including payment of the costs of the gas supplies themselves, the costs of capacity, transportation, storage, gathering and other related costs incurred in bringing those gas supplies into the Company’s systemcharge is applied. The proceeds from such instruments shall also be used fees and charges to satisfy any outstanding claims that the Company may have against Agent, includingwhich this provision applies include, but are not limited to, interstate pipeline capacity commodity costs, demand costs, balancing fees, OMO/OFO charges, imbalance chargesgas transfer service fees, cashmonthly bank transfer fees, or other charges billed to the Agent. Prior to billing the Agent's Customers, the Company shall provide the Agents with written notice via facsimile or e- mail as well as regular mail of any such default and a minimum period of five (5) business days to cure such default upon receipt of such notice. Failure to cure such default by the Agent within the five (5) business days shall result in the Company's notification of Agent's Customers via facsimile, e-out charges, pipeline penalty charges, reservation charges, and any other amounts mail or regular mail of its intention to directly invoice the Agent's Customers for all tariff charges owed to the Company or amounts for which arising from the Company is or will be responsible related to Agent’s 's participation in this Programprogram. In the event Agent elects, or is forced, to terminate its participation in this Program in accordance with the provisions Notwithstanding any provision of this AgreementTariff to the contrary, it the Company shall continue not be entitled to directly invoice any Customer so long as the Agent continues to be entitled to aggregate under its obligations to maintain its financial security instrument until it has satisfied all of its outstanding claims of Aggregation Service Agreement with the Company. In addition to The Company may impose reasonable standards of conduct for Agents, as a prerequisite for their participation in the above financial requirements, the Agent shall comply with all applicable provisions of Company’s tariff, including the Code of Conduct as set forth on Sheet Nos. 37 and 37a of Company’s tariff. Said tariff provisions are incorporated herein by referenceprogram. Agent acknowledges that in its capacity as an agent "Agent" in this Programprogram, it has a continuing responsibility to conduct its business in a legal and ethical manner. As If, as a condition result of Customers' complaints, and/or from its own investigation, the Company determines, in its sole judgment, that Agent is not operating under this Agreement in an ethical and/or legal manner then the Company shall have the right to cancel this Agreement and deny Agent’s 's further participation in this pooling program pursuant to Section VI in the Company's Tariff and/or Aggregation Service Agreement. In addition to the above financial requirement, the Company may impose reasonable standards of conducts for Agents, as a prerequisite for their participation in the Program, . Agent authorizes Company acknowledges that in its capacity as an Agent in the Program it has a continuing responsibility to verify with interstate pipelines Agent’s primary delivery point entitlements conduct its business in a legal and deliveries of natural gas supplies as described in Company’s tariff Rate Schedule SVASethical manner. Company will maintain a list of Agents who have met the Program Program’s financial and performance requirements. This list will be made available to customers upon request.
Appears in 1 contract
Samples: Aggregation Agreement
REQUIREMENTS FOR PROGRAM PARTICIPATION. The standards for participation in the this Program shall be the creditworthiness standards specified on Sheet Nos. 37a and 37b in Section VI of the Company’s tarifftariffs. Accordingly, in order to participate as an agent Agent in the Company’s programProgram, Agent shall, shall upon request, request provide the Company, on a confidential basis, with a balance sheet and other financial statements, statements and with appropriate trade and banking references. Agent also agrees to allow the Company to conduct a credit investigation as to Agent’s credit-worthiness and will pay a $50 processing fee to the Company to cover the cost of a 's credit evaluationworthiness. Further, if the Company determines that it is necessary, . Agent agrees to maintain a cash deposit, a surety bond, an irrevocable letter of credit at a Company-Company approved bank of the Agent’s 's choosing, or such other financial instrument, as the Company may require during the term of this Agreement Agreement, in order to assure Agent’s 's performance of its obligations under this Agreement. In order to assure that the value of such each financial security instruments instrument remains proportional to Agent’s 's potential liability under this Agreement, the required dollar amounts of such instruments shall be adjusted at the sole discretion of the Company, as customers Customers are added to, or deleted from, Agent’s aggregation 's pool. Agent agrees that, in the event it defaults on its obligations under this Aggregation Agreement, Company shall have the right to use such cash deposit deposit, or the proceeds from such bond, irrevocable letter of credit, or other financial instrument to satisfy Agent’s 's obligations under this Agreement. Such proceeds shall be used to secure additional gas supplies, including payment of the costs of the gas supplies themselves, the costs of capacity, transportation, storage, gathering and other related costs incurred in bringing those gas supplies into the Company’s 's system. The proceeds from such instruments shall also be used to satisfy any outstanding claims that the Company company may have against Agent, including, but not limited to, interstate pipeline capacity charges, including imbalance charges, cash-out charges, pipeline penalty charges, reservation charges, and any other amounts owed to the Company or amounts for which the Company is or will be responsible related to and arising from Agent’s 's participation in this ProgramAggregation Service program. In the event Agent elects, or is forced, to terminate its participation in this Program program in accordance with the provisions of this Agreement, it shall continue its obligations obligation to maintain its financial security instrument until it has satisfied all of its outstanding claims of the Company. In addition to the above financial requirements, the Agent shall comply with all applicable provisions Company may impose reasonable standards of Company’s tariffconduct for Agents, including as a prerequisite for their participation in the Code of Conduct as set forth on Sheet Nos. 37 and 37a of Company’s tariff. Said tariff provisions are incorporated herein by referenceprogram. Agent acknowledges that in its capacity as an agent 'Agent" in this Programprogram, it has a continuing responsibility to conduct its business in a legal and ethical manner. As If, as a condition result of customers' complaints, and/or from its own investigation, the Company determines, in its sole judgment that Agent is not operating under this Agreement in an ethical and/or legal manner, then the Company shall have the unilateral right to cancel this Agreement and deny Agent’s 's further participation in this Aggregation Service program. In addition to the above financial requirements, the Company may impose reasonable standards of conduct for Agents, as a prerequisite for their participation in the Program, . Agent authorizes Company acknowledges that in its capacity as an Agent in the Program it has a continuing responsibility to verify with interstate pipelines Agent’s primary delivery point entitlements conduct its business in a legal and deliveries of natural gas supplies as described in Company’s tariff Rate Schedule SVASethical manner. Company will maintain a list of Agents who have met the Program Program’s financial and performance requirements. This list will be made available to customers upon request.
Appears in 1 contract
Samples: Aggregation Agreement
REQUIREMENTS FOR PROGRAM PARTICIPATION. The Company shall have the right to establish reasonable standards for participation in the Program shall be the creditworthiness standards specified this Program, provided it does so on Sheet Nos. 37a and 37b of the Company’s tariffa non-discriminatory basis. Accordingly, in order to participate as an agent a Supplier in the Company’s program's Firm Transportation Program, Agent shall, Supplier shall upon request, request provide the Company, on a confidential basis, with balance sheet and other financial statements, and with appropriate trade and banking references. Agent Supplier also agrees to allow the Company to conduct a credit investigation as to Agent’s credit-Supplier's credit worthiness and will pay a $50 processing fee to the Company to cover the cost of a credit evaluationcheck, as set forth in Sheet No. 45 of the Company’s P.U.C.O. Gas No. 18 tariff. Further, if the Company determines that it is necessary, Agent Supplier agrees to maintain a cash deposit, an irrevocable letter of credit at a Company-Company approved bank of the Agent’s Supplier's choosing, or such other financial instrument, as the Company may require during the term of this Agreement agreement in order to assure Agent’s Supplier's performance of its obligations under this Agreement. In order to assure that the value of such financial security instruments remains proportional to Agent’s Supplier's potential liability under this Agreement, the required dollar amounts of such instruments shall be adjusted at the sole discretion of the Company, as customers are added to, or deleted from, Agent’s aggregation Supplier's pool. Agent Supplier agrees that, in the event it defaults on its obligations under this Agreement and in order to satisfy Supplier’s obligations under this Agreement, Company shall have the right to use such cash deposit or deposit, the proceeds from such irrevocable letter of credit, or the proceeds from any other financial instrument to satisfy Agentagreed upon by the parties, and set-off against such obligations any revenue obtained through Company’s obligations under this Agreementbilling on Supplier’s behalf or any other revenues obtained by the Company as a result of any and all agreements and relationships between Company and Supplier. Such proceeds shall be used to secure additional gas supplies, including payment of the costs of the gas supplies themselves, the costs of capacity, transportation, storage, gathering and other related costs incurred in bringing those gas supplies into the Company’s 's system. The proceeds from such instruments shall also be used to satisfy any outstanding claims that the Company may have against AgentSupplier, including, but not limited to, interstate pipeline capacity charges, including imbalance charges, cash-out charges, pipeline penalty charges, reservation annual reconciliation charges, and any other amounts owed to the Company or amounts for which the Company is or will be responsible related to Agent’s Company, and arising from, Supplier's participation in this Programpooling program. In the event Agent Supplier elects, or is forced, to terminate its participation in this Program in accordance with the provisions of this Agreementagreement, it shall continue its obligations obligation to maintain its financial security instrument until it has satisfied all of its outstanding claims of the Company. In addition to the above financial requirements, the Agent shall comply with all applicable provisions Company may impose reasonable standards of Company’s tariffconduct for Suppliers, including as a prerequisite for their participation in the Code of Conduct as set forth on Sheet NosProgram. 37 and 37a of Company’s tariff. Said tariff provisions are incorporated herein by reference. Agent Supplier acknowledges that in its capacity as an agent a Supplier in this Program, it has a continuing responsibility to conduct its business in a legal and ethical manner. As If, as a condition result of customers' complaints, and/or from its own investigation, the Company determines, in its sole judgment, that Supplier is not operating under this Agreement in an ethical and/or legal manner, then the Company shall have the right to proceed as stated in the Consequences of Supplier’s Failure to Perform or Comply section of P.U.C.O. Gas No. 18, Sheet No. 44 which may result in cancellation of this Agreement and Agent’s denial of Supplier's further participation in this pooling program in accordance with the Program, Agent authorizes Company to verify with interstate pipelines Agent’s primary delivery point entitlements and deliveries of natural gas supplies as procedures described in Company’s tariff Rate Schedule SVASArticle X of this Agreement. Company will maintain a list of Agents Suppliers, who have met the Program pooling program's financial and performance requirements. This list will be made available to customers upon request.
Appears in 1 contract
