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. 72C Original Sheet No. 72C : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

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.

 

3.10 Loss of Creditworthiness

 

(a) Transporter may at any time re-evaluate the creditworthiness of

Shipper and demand adequate assurance of payment or additional adequate

assurances of payment if Transporter determines that Shipper has in any

respect become uncreditworthy. Circumstances under which Transporter may

re-evaluate Shipper's creditworthiness include, but are not limited to, a

filing by Shipper for bankruptcy or a submission to bankruptcy or similar

federal or state proceedings, an adverse change in Shipper's payment

practices, a reorganization of Shipper's business structure, an assignment

of Shipper's contracts, or a request by Shipper for increased service. If

Transporter, following such a re-evaluation, makes an adverse preliminary

creditworthiness determination, and Shipper is current in its payments to

Transporter and otherwise has a good credit history with Transporter,

Shipper will be given notice of such adverse determination and be allowed

10 days to submit data demonstrating its continued creditworthiness before

Transporter will make a final determination of creditworthiness and, if

adverse, demand adequate assurance of payment. Transporter may at any time

withdraw or revise its demand for adequate assurance of payment or extend

its due date.

 

(b) If the Transporter requests additional information to be used for

credit evaluation after the initiation of service, the Transporter,

contemporaneous with the request, should provide its reason(s) for

requesting the additional information to the Shipper and designate to whom

the response should be sent. The Transporter and the Shipper may mutually

agree to waive the requirements of this standard.

 

(c) Upon receipt of either an initial or follow-up request from the

Transporter for information to be used for creditworthiness evaluation, the

Shipper’s authorized representative(s) should acknowledge receipt of the

Transporter’s request. The Transporter and the Shipper may mutually agree

to waive the requirements of this standard.