Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 09/04/2008, Docket: CP07-44-005, Status: Effective

Original Sheet No. 335 Original Sheet No. 335

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

27. CREDITWORTHINESS (continued)

 

27.2 Credit Requirements for long-term Shippers (continued)

 

(b) A Shipper whose long term senior unsecured debt does not

have an acceptable rating as set forth in Section 27.2(a)

above will be accepted as creditworthy if (i) Transporter

determines that, notwithstanding the absence of an

acceptable rating, the financial position of Shipper (or an

affiliate who guarantees Shipper's obligations under the

Agreement) is acceptable to Transporter and its lenders; or

(ii) the Shipper provides an irrevocable letter of credit

in an amount equal to three (3) Months of estimated

reservation charges under the Agreement; provided that such

amount shall be adjusted annually to reflect any change in

the estimated reservation charges under the Agreement for

the succeeding three (3) Months or (iii) Shipper provides

other security acceptable to Transporter and its lenders,

each acting reasonably.

 

Transporter shall provide such Shipper with a written

statement supporting Transporter's request for the security

amount requested at the time such security is requested.

If Transporter rejects the security provided by Shipper in

accordance with Section 27.2(b)(i)-(iii) above, Transporter

shall re-issue its request for the security and include a

written explanation for the rejection of the security

previously provided by Transporter.

 

(c) Nothing herein shall be read to preclude Transporter from

requiring, and enforcing for the term of the contracts, a

greater amount of security in agreements supporting an

application for a certificate to construct new or expanded

facilities, including any replacement contract entered into

upon a permanent release of capacity under such contract,

any assignment of such contract or any resale of capacity

subject to such contract in the event of a default.