Columbia Gas Transmission LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 313 Original Sheet No. 313

 

GENERAL TERMS AND CONDITIONS (Cont'd)

 

Unless otherwise agreed, the credit assurance must at all times maintain a value specified above equal to the

highest estimated charges during the term of the Service Agreements. Any deposit held by Transporter

pursuant to Section 9.6 shall accrue simple interest at the Federal Funds Rate. Upon Shipper's request,

Transporter will remit the balance of the interest to Shipper within thirty days, provided, however, that

Transporter shall not be required to remit interest to Shipper more often than every thirty days.

 

Transporter has the right to seek additional security to cover the value of any imbalance owed Transporter by

a non-creditworthy Shipper. The imbalances shall be valued at the "Spot Market Price" which shall be

defined, for each Dth on each applicable Day on which the gas is owed as the midpoint of the range of prices

reported for "Columbia Gas, Appalachia" as published in Platts Gas Daily price survey or any successor

publication, less applicable transportation charges. Furthermore, Transporter has the right to seek security

to cover the estimated value of a future monthly imbalance for non-creditworthy Shippers as follows: For a

non-creditworthy new Shipper, a security amount equal to 10% of such Shipper's estimated monthly usage

multiplied by the Estimated Imbalance Rate as described below. For a non-creditworthy existing Shipper, a

security amount equal to such Shipper's largest monthly imbalance owed to Transporter over the most recent

12-month period multiplied by the Estimated Imbalance Rate. The term "Estimated Imbalance Rate" shall equal

the average of the NYMEX future prices for the available 12-month period as such prices close on the day the

Estimated Imbalance Rate is determined.

 

(d) Notwithstanding the foregoing requirements, if Transporter constructs new facilities to

accommodate a Shipper, Transporter may require credit assurance in an amount up to Shipper's proportionate

share of the cost of the new facilities. This credit assurance may be requested at any time before or after

the in-service date of the facilities, to the extent mutually agreed to as a condition of the construction.

As Transporter recovers the cost of these facilities through its rates, the credit assurance required will be

reduced accordingly. Specifically, any credit assurance provided by a Shipper related to new facilities

shall be returned to that Shipper in equal monthly amounts over the term of its Service Agreement for service

related to the new facilities or as otherwise mutually agreed by Transporter and Shipper. This requirement

is in addition to and shall not supersede or replace any other rights that Transporter may have regarding the

construction of and reimbursement for facilities.

 

If Shipper defaults and Transporter terminates service to Shipper, then Transporter shall draw upon and

retain such collateral as necessary to reimburse Transporter for the unamortized cost of the facilities

constructed for Shipper. The capacity underlying any terminated Service Agreement shall be made available

pursuant to Section 4 of these General Terms and Conditions. Within 60 days of the capacity being made

available, to the extent such capacity has been awarded, the credit assurance retained by Transporter from

the original Shipper shall be reduced to an amount equal to the net present value of that portion of the

future reservation charge revenues of the original Shipper that would have been attributed to the cost of

those facilities less the net present value of that portion of the future reservation charge revenues of the

newly awarded Shipper that may be attributed to the cost of the facilities.