Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 04/01/2004, Docket: RP04-188-003, Status: Effective

First Revised Sheet No. 50S First Revised Sheet No. 50S : Effective

Superseding: Substitute Original Sheet No. 50S

 

GENERAL TERMS AND CONDITIONS

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(continued)

 

26.2 Service to Non-creditworthy Shippers (continued)

 

(B) In lieu of credit enhancement, Transporter may agree to accept a prepayment for service.

 

(C) The amount of credit enhancement or prepayment required to be provided by Shipper shall be

determined by Transporter, giving consideration to, without limitation:

 

(1) the highest estimated charges that may be incurred by Shipper, including reservation,

commodity, and any other applicable charges; and

 

(2) for loan transactions, any penalties that may apply under Subsections 2.1(D)(2) or

2.1(I)(3) of Transporter's Rate Schedule MC.

 

(D) Transporter shall provide written notice of its determination that an existing Shipper no

longer qualifies for standalone credit. Such notice shall state the amount of security

required by Transporter pursuant to this Subsection 26.2 in order for Shipper to continue to

receive service. Further,

 

(1) Within five (5) business days of its receipt of Transporter's notice, Shipper shall:

 

(a) submit payment in full of any amounts which remain due and owing to

Transporter for services already provided and invoiced to Shipper; and

 

(b) provide prepayment for one (1) month of service.

 

(2) Within thirty (30) days of its receipt of Transporter's notice, Shipper shall provide the

form and amount of credit enhancement described in Subsections 26.2(A) - (C) in order to

continue to receive service.

 

(E) If Shipper should fail to provide 1) the required information pursuant to Subsections 26.5

(A) and (B) - Subsequent Information; 2) any payment required pursuant to Subsection 9.4 -

Failure to Pay; or 3) any required credit enhancement and/or prepayment pursuant to this

Subsection 26.2, Transporter may suspend or terminate service to Shipper. Transporter shall

provide written notice to Shipper thirty (30) days prior to a termination of service and at

least forty-eight (48) hours prior to a suspension of service. Shipper shall not be

obligated to pay any reservation fees for suspended service attributable to the

period when such service is suspended. Upon resolution of the deficiencies cited by

Transporter in a notice of suspension, Transporter shall promptly reactivate service to

Shipper and notify Shipper of such reactivation.

 

26.3 Credit Requirements for Service Requiring New Non-Mainline Facilities

 

Shippers that contract for service requiring new non-mainline facilities, such as laterals,

meter stations, and other appurtenances, must be deemed creditworthy on a standalone basis, or

provide such other forms of additional credit enhancement, in an amount agreeable to

Transporter, for a period up to the termination date of Shipper's Agreement. In the case of a

permanent release of such service, the Replacement Shipper must be deemed creditworthy on a

standalone basis, or provide such other forms of additional credit enhancement, in an amount

agreeable to Transporter, for a period up to the termination date of the Releasing Shipper's

Agreement.

 

26.4 Initial Information

 

A completed copy of Transporter's Credit Application, as shown separately in this tariff, shall

be submitted as part of a Request for Service pursuant to Section 2 of the General Terms and

Conditions of this FERC Gas Tariff, Second Revised Volume No. 1. In circumstances where

Transporter already possesses a previously provided and current Credit Application from Shipper,

Shipper may not be required to provide all or a portion of the Credit Application information

when submitting a Request for Service. However, such Shipper shall submit as part of a Request

for Service any changes and/or updates to the Credit Application information already in

Transporter's possession. Such information shall include: