Energy West Development, Inc.
Original Volume No. 1
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Effective Date: 06/11/2010, Docket: RP10-732-000, Status: Effective
First Revised Sheet No. 31 First Revised Sheet No. 31
Superseding: Original Sheet No. 31
General Terms and Conditions
(b) For a Shipper requesting service under the FT Rate Schedule, the Shipper
prepays for service or provides a letter of credit or surety bond for an
amount equal to the sum of the Reservation Charge for a 12 Month period
and the Commodity Charge applicable to the proposed Transportation Service
(assuming 100 percent load factor usage) for a three Month period or for
the duration of the contract, whichever is shorter, such letter of credit
to be issued by a commercial bank or financial institution located in the
United States whose long-term unsecured debt securities are rated A or
better by Standard & Poor's Corporation, A or better by Dominion Bond
Rating Service, or A2 or better by Moody's Investor Service, Inc.; or
(c) For a Shipper requesting service under the IT Rate Schedule, the Shipper
prepays for service or provides a letter of credit for an amount equal to
the Commodity Charge applicable to the proposed Transportation Service
multiplied by the Maximum Transportation Quantity requested for a three
Month period, such letter of credit to be issued by a commercial bank or
financial institution located in the United States whose long-term
unsecured debt securities are rated A or better by Standard & Poor's
Corporation, A or better by Dominion Bond Rating Service, or A2 or better
by Moody's Investor Service, Inc.; or
(d) For a Shipper requesting service pursuant to the FT Rate Schedule, the
Shipper provides a guarantee or other form of security to secure payment
of an amount equal to the sum of the Reservation Charge applicable to the
proposed Transportation Service for a 12 Month period and the Commodity
Charge applicable to the proposed Transportation Service (assuming 100
percent load factor usage) for a three Month period, such guarantee or
other security to be provided by an entity which meets the
creditworthiness standards set forth in (a) above; or
(e) For a Shipper requesting service pursuant to the IT Rate Schedule, the
Shipper provides a guarantee or other form of security to secure payment
of an amount equal to the Commodity Charge applicable to the proposed
Transportation Service multiplied by the Maximum Transportation Quantity
requested for a three Month period, such guarantee or other security to be
provided by an entity which meets the creditworthiness standards set forth
in (a) above; or
(f) Transporter determines, in its sole discretion reasonably exercised, that,
based upon factors such as the quantity and character of service
requested, Shipper's credit history with other providers of Natural Gas
service, and any other factors that a reasonable party in Transporter's
position might consider, Shipper represents a reasonable credit risk.
3.6 Commencement and Continuation of Service Subject to Creditworthiness. Transporter
shall not be required to commence service on behalf of any Shipper who is
insolvent unless the Shipper prepays or provides letters of credit or guarantees
as provided in Sections 3.5(b) through (e) of the General Terms and Conditions of
this Tariff. Transporter shall not be required to continue service to any person
who has become insolvent (except where that term is used in reference to a Shipper
against whom an involuntary petition in bankruptcy under 11 U.S.C. § 303 has been
filed, but as to whom no order for relief has been entered), unless the Shipper
provides adequate assurance of payment within 20 days of an event of insolvency,
as that term is used in, and in the form prescribed by, 11 U.S.C. § 366, whether
or not an order for relief has been entered under 11 U.S.C. § 301 or 303 and
whether or not the Bankruptcy Act of 1978 applies to the Shipper.