Petal Gas Storage, L. L. C.
Original Volume No. 1
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Effective Date: 05/01/2002, Docket: RP02-188-000, Status: Effective
Original Sheet No. 76 Original Sheet No. 76 : Effective
FTS RATE SCHEDULE (Continued)
creditworthiness requirements of this FERC Gas Tariff.
4.12 Prequalification of Creditworthiness. All parties desiring to bid on
firm capacity offered by a Releasing Customer and all Prearranged
Replacement Customers must meet Petal's creditworthiness requirements
and be prequalified before bidding on any offer to release capacity.
All parties desiring to bid on firm capacity offered by a Releasing
Customer shall submit to Petal at least five (5) business days prior to
the date on which bids for the firm capacity are to be received, credit
information sufficient for Petal to determine the party's
creditworthiness, unless Petal agrees it has already determined the
bidder to be creditworthy or to have suitable credit on file with Petal.
A bidder's creditworthiness shall be assessed in accordance with the
terms of Section 3 of the General Terms and Conditions of this Tariff.
If a bidder does not qualify under Petal's creditworthiness standards,
the bidder shall either provide a letter of credit in a satisfactory
form and from a financial institution acceptable to Petal, a guaranty
from a party satisfying Petal's creditworthiness standards, or a cash
deposit equal to the lesser of (i) the maximum charges (including
reservation charge, usage charge and surcharges) payable for the term of
the release, or (ii) the maximum charges (including reservation charge,
usage charge and surcharges) payable for the first three full months of
the release. A party that does not qualify as a creditworthy bidder is
ineligible to bid on capacity.
In the case of releases not subject to bidding, the Designated
Replacement Customer must prequalify at least five (5) business days
prior to Petal's nomination deadline for transportation using the
released capacity. In all other respects, the terms and conditions
applicable to bidders also apply to the Designated Replacement
Customers who have not otherwise complied with the above requirements.
4.13 Responsibilities of Releasing Customers. The Releasing Customer shall
remain fully liable under its existing FTS Agreement with Petal for the
payment of all reservation charges each month for the full contract
quantity, whether or not such quantity has been released. A Customer
may release all or part of its firm capacity on a permanent or temporary
basis. The Releasing Customer will remain obligated to pay the
difference, if any, between the accepted bid and the applicable rate for
the remainder of the existing agreement term. A Releasing Customer
shall be responsible for notifying, or causing to be notified, its
Replacement Customer prior to exercising recall rights. Petal has the
right to rely on a Releasing Customer's notice and a Releasing Customer
shall defend and indemnify Petal against any claims, losses, liabilities