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