Questar Overthrust Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 06/15/2009, Docket: RP09-593-000, Status: Effective

Original Sheet No. 71D Original Sheet No. 71D

 

GENERAL TERMS AND CONDITIONS

 

(ii) Nothing herein shall be read to preclude Overthrust

from requiring, and enforcing for the term of the initial contracts, more

than three (3) Months of fees and charges for advance service as security in

agreements supporting an application for a certificate to construct new or

expanded facilities. For purposes of this paragraph, the term "initial

contract" shall include any replacement contract entered into upon a

permanent release of Capacity under an initial contract.

 

(c) Where a Shipper selects the prepayment option under § 10.1(b)

of these General Terms and Conditions, the prepayment amounts shall be

deposited in an interest-bearing escrow account if such an escrow account has

been established by the Shipper which meets the criteria set out in this

paragraph. The costs of establishing and maintaining the escrow account shall

be borne by the Shipper. The escrow bank must be rated at least AA or better

and shall not be affiliated with the Shipper. The escrow arrangement shall

provide for the prepayment amounts to be applied against the Shipper's

obligation under its service agreements with Overthrust and shall grant

Overthrust a security interest in such amounts as an assurance of future

performance. The escrow agreement shall specify the permitted investments of

escrowed funds so as to protect principal, and shall include only such

investment options as corporations typically use for short-term deposit of

their funds. Such escrow account shall at all times maintain the amount of

prepayment required under § 10.1(b) of these General Terms and Conditions. If

Overthrust is required to draw down the funds in escrow, it will notify the

Shipper and the Shipper must replenish such funds within three (3) Business

Days after such notice.

 

(d) Overthrust'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 Overthrust do not exceed

such limit, and Shipper has met all creditworthiness requirements as

determined in periodic credit reviews by Overthrust, 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

creditworthiness, subject to the provisions of § 10.2 of these General Terms

and Conditions.

 

(e) Notwithstanding the provisions of § 10.1(b), above, in the

event Overthrust constructs new facilities to provide service, in whole or in

part, to a Shipper, Overthrust may require from the Shipper security in an

amount up the Shipper's pro rata share of the cost of such facilities.

Security hereunder may be in any of the forms available under § 10.1(b) of

these General Terms and Conditions, at Shipper's choice. Overthrust is only

permitted to recover the cost of facilities once, either through rates or

through this provision. As Overthrust recovers the cost of these facilities