Crossroads Pipeline Company
First Revised Volume No. 1
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Effective Date: 09/10/2007, Docket: RP07-567-000, Status: Effective
Original Sheet No. 72A Original Sheet No. 72A : Effective
GENERAL TERMS AND CONDITIONS
(Continued)
(c) Transporter may require adequate assurance of payment for any
service under this Tariff requested by an insolvent or uncreditworthy
Shipper. Such a Shipper may receive or continue to receive service if it
provides adequate assurance of payment for service. Adequate credit
assurance will be calculated as follows: (i) For firm service under Rate
Schedule FT-1, the credit assurance elected must include an advance payment
equal to the value of one (1) month of demand charges under Shipper’s
Service Agreement(s) with Transporter, to be provided within five (5)
business days from the day Transporter notifies the Shipper that Shipper
did not qualify for or has lost its creditworthiness status, and an
additional full two (2) months of demand charges to be provided as
collateral held for security within thirty (30) days from the day
Transporter notified the Shipper that the Shipper has not qualified for or
has lost its creditworthiness status; (ii) For all other services provided
pursuant to the Tariff, the credit assurance elected must include an
advance payment equal to the value of one (1) month of the highest usage
under Shipper’s Service Agreement(s) with Transporter, to be provided
within five (5) business days from the day Transporter notifies the Shipper
that Shipper did not qualify for or has lost its creditworthiness status,
and an additional two (2) highest months of estimated usage during the term
of the Service Agreement(s)to be provided as collateral held for security
within thirty (30) days from the day Transporter notified the Shipper that
the Shipper has not qualified for or has lost its creditworthiness status.
For a new Shipper adequate credit assurance will be based on the three (3)
highest months of estimated usage during the term of the Service Agreement
and for an existing Shipper, adequate credit assurance will be based upon
the highest three (3) months of activity for all of Shipper’s active
service agreements during the previous twelve months.
Adequate assurance of payment may include:
(1) a cash deposit with Transporter of collateral held for
security, provided that such deposit may be applied by Transporter to
satisfy a delinquent account;
(2) an irrevocable letter of credit that is both from a
creditworthy financial institution and in a form deemed acceptable in
Transporter’s sole and reasonable discretion;
(3) a guarantee that is both from a creditworthy entity and in
a form deemed acceptable in Transporter’s sole and reasonable
discretion; or
(4) a grant to Transporter of a security interest in
collateral, the value of which is mutually agreed upon by Transporter
and Shipper.