Horizon Pipeline Company, L.L.C.
Original Volume No. 1
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Effective Date: 09/01/2005, Docket: RP05-413-000, Status: Effective
Original Sheet No. 158A Original Sheet No. 158A : Effective
GENERAL TERMS AND CONDITIONS
(b) If a Shipper fails to satisfy the credit criteria,
such Shipper may still obtain service hereunder if it elects one of
the following options:
(1) Payment in advance for three (3) months'
(2) A standby irrevocable letter of credit drawn
upon a bank acceptable to Horizon;
(3) Security interest in collateral provided by
the Shipper found to be satisfactory to Horizon; or
(4) Guarantee by a person or another entity which
does satisfy the credit appraisal.
(c) Horizon's credit appraisal procedures involve the
establishment of dollar credit limits on a standardized,
nondiscriminatory basis. To the extent that a Shipper's accounts with
Horizon do not exceed such limit, and Shipper has met all
creditworthiness requirements as determined in periodic credit reviews
by Horizon, which reviews may be conducted on at least an annual
basis, no new credit appraisals shall be required when an existing
Agreement is amended or a request for a new Agreement is made,
provided that Shipper's payment history has been satisfactory and
there is no bona fide basis for questioning Shipper's
13.2 In order to obtain an Agreement under Rate Schedule FTS,
a Shipper must sign a consent and agreement, in a form acceptable to
Horizon, to pay all charges under the Agreement to the agent
designated by Horizon's lenders in the event the Shipper is notified
that an event of default has occurred under Horizon's loan agreement.