Liberty Gas Storage, LLC

Original Volume No. 1

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Effective Date: 11/01/2007, Docket: RP07-715-000, Status: Effective

Second Revised Sheet No. 154 Second Revised Sheet No. 154 : Effective

Superseding: First Revised Sheet No. 154

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

32.3 Upon determination by Liberty that Customer has failed to satisfy or subsequently during

the term of the Service Agreement no longer satisfies the credit criteria, or if guarantor fails to

continue to satisfy the credit criteria, Liberty will notify Customer by certified mail and email,

within 10 days of such determination, of the reasons for such determination. Such Customer may still

obtain credit approval by Liberty if it elects to provide one of the following:

 

(a) an advance deposit which shall be considered collateral held for security and not a pre-payment of

services; provided, however, that any deposit shall earn interest at the Commission-approved rate or shall

be made into an interest-bearing escrow account to which Liberty shall have access to payments for services

if needed;

 

(b) a standby irrevocable letter of credit issued by a bank to Liberty's satisfaction;

 

(c) security interest in collateral found to be satisfactory to Liberty; or

 

(d) a guarantee, acceptable to Liberty, by another person or entity which satisfies credit

appraisal criteria set forth in this Section 32.

 

32.4 If Customer obtains credit approval by providing an advance deposit or other credit

instrument and then subsequently satisfies the credit criteria, Liberty shall return to Customer any

such advance deposit with interest. Customer shall continue to provide such advance deposit or credit

instrument for a period of three Months following the termination of service, unless Customer pays all

of the amounts of any invoices for service as reasonably determined by Liberty prior to that time.

 

32.5 For a Service Request on Liberty's existing facilities, the amount of the advance

deposit, standby irrevocable letter of credit, security interest or guarantee shall not exceed an

amount equal (a) for firm storage service, three Months of reservation charges, and (b) for

interruptible storage or related services, three Months of projected usage charges, at the maximum

applicable unit rate hereunder. For a Service Request for which Liberty has agreed to construct new

facilities, the amount of the advance deposit, standby irrevocable letter of credit, security interest

or guarantee should at all times equal (a) where the new facilities will enable Liberty to serve more

than one Customer, Customer's share of the cost of the new facilities as reasonably determined by

Liberty on a not unduly discriminatory basis and (b) where the new facilities will enable Liberty to

serve only Customer, the entire cost of the new facilities.

 

32.6 Termination or suspension of service and a Service Agreement does not affect the validity

or requirement of a letter of credit or guarantee in effect at the time service is terminated or

suspended.

 

32.7 If Customer's or guarantor's credit standing ceases to meet Liberty's credit requirements

during the period of service, then Liberty has the right to require security or a deposit as specified

herein. If security or a deposit in an amount equal to one month of reservation or usage charges, as

applicable, is not tendered within five (5) business days of Liberty's written request, then Liberty is

not required to continue service. In addition, if such security or deposit is not increased to an

amount equal to three months of reservation or usage charges, as applicable, within 30 days of

Liberty's written request, then Liberty is not required to continue service. If Customer is unable to

maintain credit approval, the executed Service Agreement shall terminate upon at least 30 days' written

notice to Customer and the Commission. Liberty retains the right to pursue additional remedies, enforce

any rights and affect any collection due to Liberty.