Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 04/01/1999, Docket: RP98-363-000, Status: Effective

First Revised Sheet No. 76 First Revised Sheet No. 76 : Effective

Superseding: Original Revised Sheet No. 76

RATE SCHEDULE CSS

Contract Storage Service

(Continued)

 

as of the date and time COMPANY receives such notification from

SHIPPER.

 

(d) COMPANY shall not be required to perform services under this Rate

Schedule for any SHIPPER who is or has become insolvent, or who fails to

demonstrate creditworthiness, or who fails to make payments pursuant to

Section 15 of the General Terms and Conditions (except if SHIPPER has

disputed a bill and made provision for such payment in accordance with

Section 15.3 of the General Terms and Conditions). SHIPPER may

receive service under this Rate Schedule, however, if SHIPPER makes a

security deposit in an amount equal to the cost of performing the maximum

storage service requested by SHIPPER hereunder for a three (3) month

period, furnishes good and sufficient surety, as determined by COMPANY

in its reasonable discretion, in an amount equal to the cost of performing

the maximum storage service requested by SHIPPER hereunder for a three

(3) month period, or furnishes a guaranty from a creditworthy party that

said creditworthy party will be responsible for payment of all liabilities of

SHIPPER under its CSS Service Agreement.

 

(e) COMPANY shall not be obligated to accept any request for firm storage

service unless adequate firm storage, withdrawal and injection capacity is

available without the construction of additional facilities by COMPANY.

If because of insufficient capacity, COMPANY is unable to provide the

storage service requested, or any part thereof, a Service Agreement will be

provided to SHIPPER only for the capacity COMPANY has available.

SHIPPER'S remaining request for service shall remain valid until the end

of the following May 31 (or May 31 one year thereafter if the request is

submitted between April 1 and May 31). If capacity does not become available

by the end of such period, SHIPPER may renew its request for another one-

year period and each year thereafter by giving COMPANY written or

electronic notice to renew its request by May 31 of the current one-year

period. If SHIPPER does not renew its request by May 31 at the end of any

one-year period, the request shall become invalid on May 31 at the end of the

current one-year period.

 

(f) Upon the termination of storage service hereunder, SHIPPER must

withdraw its Storage Inventory by no later than the end of COMPANY'S

withdrawal period, i.e., March 31, following termination. In lieu of

withdrawing its Storage Inventory, SHIPPER can also attempt to sell its

Storage Inventory to another SHIPPER hereunder