Sabine Pipe Line Company LLC

Second Revised Volume No. 1

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Effective Date: 07/31/1993, Docket: RS92- 78-003, Status: Effective

Original Sheet No. 269 Original Sheet No. 269 : Superseded

 

 

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 9 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