Sabine Pipe Line Company LLC

Original Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-455-000, Status: Effective

First Revised Sheet No. 269 First Revised Sheet No. 269 : Effective

Superseding: Original Sheet No. 269

10.13 Prequalification of Credit Worthiness

 

All parties desiring to bid on firm capacity offered by a

Releasing Shipper and all prearranged Replacement Shippers

must meet Sabine's credit worthiness requirements and be

prequalified before bidding on any Offer To Release

Capacity. All parties desiring to bid on firm capacity

offered by a Releasing Shipper shall submit to Sabine 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 Sabine to determine the party's

credit worthiness, unless Sabine agrees it has already

determined the bidder to be credit worthy or to have

suitable credit on file with Sabine. A bidder's credit

worthiness shall be assessed in accordance with the terms

of Section 24 of the General Terms and Conditions. If a

bidder does not qualify under Sabine's credit worthiness

standards, the bidder shall either provide a letter of

credit in a satisfactory form and from a financial

institution acceptable to Sabine, a guaranty from a party

satisfying Sabine's credit worthiness 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

credit worthy bidder is ineligible to bid on capacity.

After Sabine has determined a bidder credit worthy and

eligible to bid, Sabine will issue a Bidder

Prequalification Number to the bidder. Once a bidder is

issued a Bidder Prequalification Number it is not

necessary for that bidder to resubmit credit information

for prequalification except as requested by Sabine.

 

In the case of releases not subject to bidding, the

prearranged Replacement Shipper must prequalify at least

five (5) Business Days prior to Sabine's nomination

deadline for transportation using the released capacity.

In all other respects, the terms