Wyckoff Gas Storage Company, LLC

Original Volume No. 1

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Effective Date: 12/31/9999, Docket: RP09- 444-000, Status: Accepted

Original Sheet No. 36 Original Sheet No. 36

 

operational or managerial conditions, including, without limitation, any change in

management or change in ownership and (b) cause Customer's Credit

Support Provider to inform Transporter of similar information involving

the Credit Support Provider.

 

SECTION 18. SECURITY

 

18.1 Security. Transporter shall have the right to satisfy any

and all amounts due and payable to Transporter in a manner consistent

with applicable law, including, without limitation, by asserting and

enforcing its rights under all applicable liens and security interests

held by Transporter in Customer Inventory.

 

18.2 Performance Assurance. If at any time a party requesting

or currently receiving service under this Gas Tariff fails to

demonstrate Creditworthiness, or if the aggregate amounts expected to

become due for services requested or being received by a party under

existing and/or requested Service Agreements and/or Billing Amendments,

together with any other amounts then owed by such party to Transporter,

exceed such party's credit limit as established by Transporter,

Transporter shall be entitled to require (in addition to all liens and

security interests already claimed by or granted in favor of

Transporter), as a condition to providing or continuing to provide

services under new or existing Service Agreements and/or Billing

Amendments, that such party requesting or currently receiving service

under this Gas Tariff provide one or more of the following forms of

“Performance Assurance”: (a) cash payment (in U.S. dollars), as

collateral held for security, on terms satisfactory to Transporter, (as

further described in this Article 18 below), (b) delivery, of an

irrevocable standby letter of credit issued by a Qualified Institution;

(c) grant of a first priority security interest in collateral

satisfactory to Transporter; and/or (d) delivery of a guarantee by a

Credit Support Provider that satisfies Transporter’s Creditworthiness

requirements. In addition to and not in limitation of the foregoing,

Transporter shall have, at all times, the right to a first priority

security interest, as well as a statutory warehouse lien under Article

7 of the Uniform Commercial Code (as adopted in New York), in all

Customer Inventory held in Transporter’s Storage Facility to secure all

amounts owed by Customer under any and all Service Agreements entered

into between Customer and Transporter.

 

18.3 Required Amounts of Performance Assurance.

 

(a) Except as to existing Customers, the required amount

of such Performance Assurance shall be calculated as follows:

 

(i) For FSS, an amount equal to the anticipated

amount of Demand Charges to be payable for the three (3) months of

highest-estimate utilization during a contract year or the duration of

Customer's FSS Service Agreement, whichever is shorter, at the rate

specified in Customer's FSS Service Agreement; and

 

(ii) For ISS, an amount equal to the anticipated

usage charge to be payable for fifteen (15) Days of usage per month for

three (3) months or the duration of Customer's relevant Service

Agreement, whichever is shorter, calculated on a one hundred percent

(100%) load factor basis.

 

(b) For an existing Customer, the required amount of

such Performance Assurance shall be equal to the amount of service

charges payable for the three months of highest utilization during the

previous twelve (12) months for all of Customer's Service Agreements

which are active at the time of Transporter’s request for such

Performance Assurance.