Crossroads Pipeline Company

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

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.