Portland Natural Gas Transmission System

Second Revised Volume No. 1

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Effective Date: 09/01/2006, Docket: RP06-449-000, Status: Effective

Original Sheet No. 313 Original Sheet No. 313 : Effective

 

GENERAL TERMS AND CONDITIONS (Continued)

 

(b) Rated Shippers. Any Shipper that is requesting

creditworthiness approval under Section 3.5(a) shall provide evidence of the

credit rating of such firm's long-term unsecured debt securities.

 

(c) Prepayment/Letter of Credit Shippers. Any Shipper that is

requesting creditworthiness approval under Section 3.5(b) shall provide

either:

 

(1) in the case of prepayment, evidence that Shipper has the

funds readily available to make the prepayment in the amount required by

Section 3.5(b); or

 

(2) in the case of a letter of credit,

 

(A) a written commitment from the proposed issuer

together with a copy of the form of sight draft and letter of credit proposed

to be issued; and

 

(B) information supporting the rating of the proposed

issuer's long-term unsecured debt securities.

 

(d) Guarantee/Other Form of Security Shippers. Any Shipper that

is requesting creditworthiness approval under Section 3.5(c) shall provide

either:

 

(1) in the case of a guarantee, the information described in

Section 3.5(a) herein, with respect to the proposed guarantor; or

 

(2) in the case some other form of security is offered, a

written description of the form of security offered by the Shipper, together

with a written explanation as to why the security should be accepted in lieu

of a guarantee or letter of credit, and such other information as shall

support Shipper's request for creditworthiness approval.

 

(e) Other Information. Shipper shall also provide such other

information as Transporter shall request.

 

3.5 Credit Evaluation. For purposes herein, the determination of

Shipper's creditworthiness shall be based upon:

 

(a) Shipper's long-term unsecured debt securities, at the time it

enters into a Gas Transportation Contract (or a precedent agreement therefor)

or Park and Loan Service Contract and throughout the term thereof, are rated

BBB or better by Standard & Poor's Corporation, BBB or better by Dominion Bond

Rating Service or Baa2 or better by Moody's Investor Service; or