Bluewater Gas Storage, LLC

Original Volume No. 1

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Effective Date: 04/01/2008, Docket: RP08-249-000, Status: Effective

Second Revised Sheet No. 157 Second Revised Sheet No. 157 : Pending

Superseding: First Revised Sheet No. 157

GENERAL TERMS AND CONDITIONS

(Continued)

 

of the Customer's Storage Service Agreement, whichever is shorter;

or (3) for service that requires BLUEWATER to construct new

facilities, an amount determined by BLUEWATER prior to the start

of construction that is reasonable in light of the risks of the

construction project, not to exceed Customer's proportional share

of the cost of the facilities to be constructed (which amount

shall be reduced as Customer pays off the obligation for

construction of new facilities); plus, for each of (1), (2) and

(3), the market value of any quantities of Gas loaned pursuant to

Customer's Firm Loan Service Agreement, Interruptible Loan Service

Agreement or Hub Services Agreement. BLUEWATER shall recompute

the market value of any quantities of Gas loaned to a Customer

pursuant to Customer's Firm Loan Service Agreement, Interruptible

Loan Service Agreement or Hub Services Agreement on a daily basis.

Customer shall be required to provide additional Financial

Assurances upon two (2) Business Days' notice any time BLUEWATER's

recomputation indicates a dollar amount for Financial Assurances

that exceeds the level of Financial Assurances previously posted

by Customer pursuant to this Section 31.7 by ten percent (10%) or

more.

 

31.8 Customer's obligation to maintain an Acceptable

Credit Rating or to provide Financial Assurances shall continue

for so long as the Parties are bound by the Storage Service

Agreements and all transactions entered into thereunder. This

obligation shall terminate when Customer has performed or

satisfied all of its obligations under the Storage Service

Agreements and, upon such termination, BLUEWATER shall return to

Customer, if applicable:

 

(a) the Letter of Credit and funds held by BLUEWATER as

security pursuant to Section 31.7(a) then in its possession but

only to the extent it has not then applied such funds pursuant to

this FERC Gas Tariff to the debts, expenses, costs, assessments

and liabilities payable by Customer to BLUEWATER pursuant to the

provisions of the Storage Service Agreement(s);

 

(b) the Guarantee held by BLUEWATER pursuant to Section

31.7(b);

 

(c) any security accepted by BLUEWATER pursuant to

Section 31.7(c); or

 

(d) any amount prepaid by Customer pursuant to Section

31.7(d) not required to pay charges for service rendered under the

Storage Service Agreements.

 

32. DISPOSITION OF RETAINED QUANTITIES

 

In the event that BLUEWATER holds an auction for Gas

quantities retained pursuant to Section 8 of Rate Schedule FSS,

Section 8 of Rate Schedule FP, Sections 2 or 8 of Rate Schedule

ISS, Sections 2 or 8 of Rate Schedule IHBS, Sections 2 or 8 of

Rate Schedule IP, or Sections 2 or 8 or Rate Schedule IB,

BLUEWATER shall post such quantities on the Internet Web Site as

soon as reasonably practicable. BLUEWATER shall accept bids only

during the time period from 7:00 a.m. until 11:00 a.m. CCT on the

second Business Day following such posting. BLUEWATER shall award

purchase of the Gas to the Customer submitting the highest bid,

and shall notify the Customer