North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 01/14/2008, Docket: RP08-118-000, Status: Effective

Third Revised Sheet No. 128 Third Revised Sheet No. 128 : Effective

Superseding: Second Revised Sheet No. 128

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

12. CREDITWORTHINESS

 

12.1 Creditworthiness for Firm Transportation Service

 

NBP shall not be required to perform or to continue transportation

service under this FERC Gas Tariff, Original Volume No. 1, on

behalf of any Shipper who fails to comply with NBP's

creditworthiness standards. If Shipper is found by NBP to be non-

creditworthy, NBP will, upon request, inform Shipper in writing as

to the reasons Shipper has been deemed non-creditworthy.

 

If Shipper's credit standing ceases to meet NBP's credit

requirements during the period of service, Shipper must, within

five (5) business days, pay for one month of service in advance to

continue service. Shipper must, within thirty (30) days, provide an

acceptable guarantee or either a cash security deposit or letter of

credit, consistent with NBP's applicable creditworthiness

standards. For shippers utilizing Expansion Capacity on lateral

facilities, the security that must be provided within thirty (30)

days will not be greater than a shipper's pro rata share of the

total facilities costs, and such security will be reduced over time

in proportion to the shipper's contract term. If Shipper fails to

provide the required security within this time frame, NBP may

suspend service immediately. Further, NBP may provide simultaneous

written notice to Shipper and the Commission that it will terminate

service in thirty (30) days if Shipper fails to provide security.

Transporter also may exercise any other remedy available to

Transporter hereunder, at law or in equity. Shippers shall

provide, initially and on a continuing basis, financial statements,

evidence of debt and/or credit ratings, and other such information

as is reasonably requested by NBP to establish or confirm Shipper's

qualification for service. Credit limits will be established based

on the level of requested service and Shipper creditworthiness, as

established by the following:

 

(a) Creditworthiness must be evidenced by a rating for

unenhanced senior unsecured debt of at least BBB- by

Standard & Poors, Baa3 by Moody's, or an equivalent rating

as determined by NBP. In the event that a split rating

occurs between rating agencies, NBP will rely upon the lower

of the ratings. This rating must be a "foreign currency"

rating if the Shipper is domiciled outside of the United

States. "Local currency" ratings are unacceptable unless

the Shipper's local currency is US Dollars (e.g. Puerto

Rico). Shipper credit limits for firm transportation will

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