El Paso Natural Gas Company

First Revised Volume No. 1-A

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Effective Date: 05/01/1990, Docket: GT90- 26-000, Status: Effective

Original Sheet No. 253 Original Sheet No. 253 : Superseded

 

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

 

23. COMPLIANCE PLAN FOR TRANSPORTATION SERVICES AND AFFILIATE

TRANSACTIONS (Continued)

 

 

Based on its review of Shipper's financial statements, El Paso may agree

to waive any further credit requirements as a condition of service.

Alternatively, El Paso may request Shipper to provide additional

evidence of its creditworthiness, in which event Shipper may elect to

provide one of the following:

 

- a clean irrevocable letter of credit in form and

substance satisfactory to El Paso in a face amount equal

to (i) the sum of the gas cost component of El Paso's

sale-for-resale rates and the applicable unit

transportation rate(s) specified in El Paso's Tariff for

the service(s) which El Paso provides Shipper, (ii)

multiplied by the maximum daily quantity specified in

El Paso's Transportation Service Agreement with Shipper,

(iii) multiplied by 90; or

 

- a guarantee, in form and substance satisfactory to

El Paso, executed by a person whom El Paso deems

creditworthy, of Shipper's performance of its obligations

to El Paso under the Transportation Service Agreement; or

 

- such other form of security as Shipper may agree to

provide and as may be acceptable to El Paso.

 

The FERC Gas Tariff of El Paso does not require the pipeline to provide

transportation service on behalf of any Shipper who fails to demonstrate

creditworthiness.

 

El Paso will treat the financial statements provided by Shipper as

confidential.

 

 

 

AFFILIATE INFORMATION

 

1. Is Shipper affiliated with El Paso: Yes No

 

If YES, please state specific affiliation: .