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. 37 Original Sheet No. 37

 

18.4 When Performance Assurance is Due. With respect to a

request for a new Service Agreement or a request resulting in a Billing

Amendment, in the event Transporter requires Performance Assurance,

such Performance Assurance in an amount equivalent to no less than one

month of estimated fees and service charges must be received by

Transporter within five (5) Days of Transporter’s written request for

 

Performance Assurance, and an amount equivalent to no less than three

(3) months of estimated taxes and service charges must be received by

Transporter within thirty (30) Days of such request; otherwise, the

requesting party's service request will be deemed null and void. With

respect to any other Service Agreement under which service is currently

being rendered, the Performance Assurance required by Transporter must

be received by Transporter within same deadlines as stated above. If

Customer does not provide the required Performance Assurance within the

time period set forth in this Section 18.4, Transporter may immediately

after such time period suspend service and may, upon thirty (30)

calendar Days notice to Customer and the FERC, terminate all or any of

Customer's current Service Agreements. If Transporter rejects a

Customer's proposed form of Performance Assurance, Transporter shall

inform such Customer as to the reason for such rejection and Customer

shall have the opportunity to deliver Performance Assurance that is

acceptable to Transporter; provided, however, that any re-issuance of a

request for Performance Assurance by Transporter shall not result in

additional time for a Customer to provide the required Performance

Assurance, unless Transporter expressly agrees to the contrary.

 

18.5 Cash Payment as Security. Performance Assurance in the

firm of a cash payment, to be held as collateral for security, may be

required in a maximum amount of three (3) months of estimated fees and

service charges and may be either (A) paid directly to Transporter,

with such cash deposit accruing interest for the benefit of the pre-

paying Customer (from the date Transporter receives such cash deposit)

at the most recently established 91-Day United States Treasury Bill

auction rate, as published in The Wall Street Journal (or a similarly

reputable publication if The Wall Street Journal ever ceases to exist),

with such interest being calculated monthly but payable only at the

termination or expiration of all Service Agreement(s) for which such

Performance Assurance is required, or (B) deposited in a segregated,

interest-bearing escrow account (established by Customer at

Transporter’s expense and with interest accruing for Customer's

benefit) in the name of Customer and pledged to Transporter pursuant to

an account control agreement, pursuant to which account control

agreement Transporter shall have unrestricted access to such pre-paid

funds to the extent of the aggregate amount of any one or more invoices

for services provided to such customer.

 

18.6 Right of Set-Off. If either Party (for purposes of this

Section, the “Delinquent Party”) fails to pay in full any amount owing

to the other Party (for purposes of this Section, the “Non-Receiving

Party”) under any Service Agreement within five (5) Days after such

amount becomes due, then, in addition to all other remedies available

to it under this Gas Tariff, the Service Agreement, at law, in equity

or otherwise, the Non-Receiving Party may set off the overdue amount

against amounts otherwise owing by the Non-Receiving Party to the

Delinquent Party under this Gas Tariff, the Service Agreement or any

other agreement between the Parties.

 

18.7 WAREHOUSE LIEN. TRANSPORTER SHALL BE ENTITLED TO, AND IT

HEREBY CLAIMS, A LIEN ON ALL GAS DELIVERED TO IT BY OR ON BEHALF OF

CUSTOMER, AND ALL PROCEEDS RELATED THERETO, AS PROVIDED FOR UNDER

ARTICLE 7 OF THE UNIFORM COMMERCIAL CODE (“UCC ARTICLE 7”), WITH THE

RIGHTS OF ENFORCEMENT AS PROVIDED THEREUNDER AND HEREIN. IN NO WAY

LIMITING THE FOREGOING, SUCH LIEN SHALL BE FOR ALL CHARGES FOR