Gas Transmission Northwest Corp.
Third Revised Volume No. 1-A
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Effective Date: 01/01/2007, Docket: RP06-407-000, Status: Effective
Second Revised Sheet No. 136 Second Revised Sheet No. 136 : Effective
Superseding: First Revised Sheet No. 136
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.3 Creditworthiness (Continued)
(C) Security requirements for Expansion Capacity 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 GTN 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 GTN, GTN shall thereafter return Shipper's security
on either a monthly basis or as mutually agreed with Shipper
consistent with the reduction in SMSO. GTN is only permitted to
recover the cost of Expansion Capacity on lateral facilities once
through either transportation rates or, in the event of shipper
default, by means of the security provided through this
provision.
(D) Creditworthiness for Interruptible Transportation Service
(1) GTN shall not be required to perform or to continue
interruptible transportation service under this FERC Gas
Tariff, Third Revised Volume No. 1-A, on behalf of any
Shipper who, after GTN's request, fails to demonstrate
creditworthiness. If Shipper is found by GTN to be non-
creditworthy, GTN will, upon request, inform Shipper in
writing as to the reasons Shipper has been deemed non-
creditworthy.
(Continued)