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.