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. 131 Third Revised Sheet No. 131 : Effective

Superseding: Second Revised Sheet No. 131

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

12. CREDITWORTHINESS (Continued)

 

12.1 Creditworthiness for Firm Transportation Service (Continued)

 

(b) (Continued)

 

(iv) Any other security mutually agreed upon by Shipper and

NBP. Such other security shall be accepted on a

nondiscriminatory basis.

 

12.2 Credit Standards for Capacity Release

 

(a) Long Term Capacity Release: The standards for Firm

Transportation Service apply. However, pursuant to

Paragraph 19.3 of this FERC Gas Tariff, a Releasing Shipper

has the option of waiving the creditworthiness requirements

for temporary releases of capacity for as long as the

Releasing Shipper maintains compliance with NBP's

creditworthiness requirements.

 

(b) Short Term Capacity Release: The standards for Firm

Transportation Service apply. However, pursuant to

Paragraph 19.3 of this FERC Gas Tariff, a Releasing Shipper

has the option of waiving the creditworthiness requirements

for temporary releases of capacity for as long as the

Releasing Shipper maintains compliance with NBP's

creditworthiness requirements.

 

12.3 Credit requirements for pipeline expansion projects will be

separately identified within the nondiscriminatory project

requirements included as part of any open season for expansion

capacity. The amount of security initially required for Expansion

Capacity on lateral facilities will be determined by NBP and may be

up to the cost of the facilities to be constructed ("Maximum

Allowable Security Requirement or MASR"). Where new lateral

facilities serve multiple shippers, an individual shipper's maximum

security obligation will be for no more than its proportionate

share of the MASR ("Shipper's Maximum Security Obligation or

SMSO"). Subsequent to Expansion Capacity on lateral facilities

being placed into service, the SMSO shall be reduced in proportion

to contract term. Shipper's actual security requirement, as

identified within the open season project requirements, may be

equal to or less than the SMSO ("Shipper's Actual Security

Obligation or SASO"). When the SMSO equals the SASO held by NBP,

NBP shall thereafter return Shipper's security on either a monthly

basis or as mutually agreed with Shipper consistent with the

(Continued)