North Baja Pipeline, LLC

Original Volume No. 1

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

Fifth Revised Sheet No. 130 Fifth Revised Sheet No. 130 : Effective

Superseding: Fourth Revised Sheet No. 130

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

12. CREDITWORTHINESS (Continued)

 

12.1 Creditworthiness for Firm Transportation Service (Continued)

 

(b) (Continued)

 

(i) Guarantee: Shipper may obtain a guarantee of financial

performance in a form satisfactory to NBP from a

corporate affiliate of the Shipper or a third party,

either of which meets the creditworthiness standard

discussed above. For these Shippers the credit limit

will be based upon the financials of the guarantor. A

form of guarantee is available on NBP's website.

 

(ii) Cash Prepayment: A Shipper may prepay for service via

cleared check or wire transfer. For Existing Capacity,

the amount of prepayment must be sufficient to cover the

value of three (3) months' worth of applicable

transportation charges. For contracts with a term of less

than one (1) year, the amount of prepayment must be

sufficient to cover the value of up to three (3) months'

worth of applicable transportation charges. For Expansion

Capacity on lateral facilities, the pipeline will not

require a deposit greater than Shipper's pro rata share

of the total facilities costs, and such deposit will

be reduced over time in proportion to Shipper's

contract term, consistent with Paragraph 12.3 of these

General Terms and Conditions. NBP will pay interest on

prepayments at the applicable monthly "Federal Funds

(effective)" rate published in the Federal Reserve

Statistical Report H.15.

 

(iii) Letter of Credit: Shipper may post a Letter of Credit

(LC) in a form acceptable to NBP. A form of LC is

available on NBP's website. For Existing Capacity, the

amount of LC must be sufficient to cover the value of

three (3) months' worth of applicable transportation

charges. For contracts with a term of less than one (1)

year, the amount of the LC must be sufficient to cover

the value of up to three (3) months' worth of applicable

transportation charges. For Expansion Capacity on lateral

facilities, the pipeline will not require an LC greater

than Shipper's pro rata share of the total facilities

costs, and such LC will be reduced over time in

proportion to Shipper's contract term, consistent with

Paragraph 12.3 of these General Terms and Conditions.

(Continued)