Gulf Crossing Pipeline Company LLC

Original Volume No. 1

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Effective Date: 12/20/2008, Docket: RP09-61-000, Status: Effective

Original Sheet No. 504 Original Sheet No. 504

 

GENERAL TERMS AND CONDITIONS

Section 5

(Continued)

 

 

5.2 Credit requirements for pipeline expansion projects will be

separately identified within the nondiscriminatory project

requirements included as part of any open season for the

expansion capacity.

 

5.3 Imbalance Gas - Gulf Crossing has the right to seek security to

cover the value of any imbalance owed Gulf Crossing by a non-

creditworthy Customer. Such imbalances shall be valued at the

Index "Sell" Price determined in accordance with the provisions

of Section 14 hereof. Such determination shall be based upon the

weekly prices that are available at the time the imbalance

occurred. Furthermore, Gulf Crossing has the right to seek

security to cover the estimated value of a future monthly

imbalance for non-creditworthy Customers as follows: For a non-

creditworthy new Customer, a security amount equal to 10% of such

Customer's estimated monthly usage multiplied by the Estimated

Imbalance Rate as described below. This security determination

for a non-creditworthy, new Customer shall be used for the first

seven months of service to establish a historical record.

Thereafter, security for such Customer will be determined as

specified for a non-creditworthy existing Customer. For a non-

creditworthy existing Customer, a security amount equal to such

Customer's largest monthly imbalance owed to Gulf Crossing 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.

 

5.4 Creditworthiness for Firm and Interruptible Transportation

Services

 

(a) Customer's total collateral requirement is the amount

necessary to collateralize all of a Customer's firm and

interruptible transportation agreements, including

security to cover the value of any imbalance Gas owed Gulf

Crossing as valued pursuant to paragraph 5.3 above.

 

(b) For purposes of this Section, the insolvency of a Customer

shall be evidenced by the filing by such Customer or any

parent entity thereof (hereinafter collectively referred in

this paragraph to as "the Customer") of a voluntary

petition in bankruptcy or