Sabine Pipe Line Company LLC

Original Volume No. 1

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

Original Sheet No. 302 Original Sheet No. 302 : Effective

 

24.2 Credit Appraisal

 

Sabine's credit appraisal procedures involve the

establishment of dollar credit limits for each Shipper. To

the extent that the value of the transportation services

provided to a Shipper do not exceed the established credit

limit, no new credit appraisal will be conducted if an

executed Service Agreement is amended or Shipper requests

new transportation services, provided that the Shipper's

payment history with Sabine has been satisfactory and there

is no bona fide basis for questioning a Shipper's

creditworthiness. If a Shipper fails to demonstrate

creditworthiness, Shipper may obtain transportation service

under this FERC Gas Tariff and any Service Agreement by:

 

a) prepaying for such service in an amount equal to the

cost of performing the transportation service

requested for a three (3) month period; or

 

b) providing a standby irrevocable letter of credit drawn

on a bank acceptable to Sabine; or

 

c) furnishing a good and sufficient security interest in

collateral which is satisfactory to Sabine; or

 

d) providing a guarantee by any firm, corporation, agent,

assignee or legal representative who satisfies the

creditworthiness criteria of Subsection 9.624.1.

 

At any time after Shipper is determined to be non-

creditworthy by Sabine, Shipper may initiate a

creditworthiness re-evaluation by Sabine. As part of

Shipper's re-evaluation request, Shipper must either update

or confirm in writing the prior information provided to

Sabine related to Shipper's credit worthiness. Such update

shall include any event(s) that Shipper believes could lead

to a material change in Shipper's creditworthiness.