Trunkline LNG Company, LLC

Second Revised Volume No. 1-A

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Effective Date: 08/01/2003, Docket: RP03-535-000, Status: Effective

Original Sheet No. 60 Original Sheet No. 60 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

2. REQUESTS FOR SERVICE (Continued)

 

(B) Upon notification by TLNG that Shipper has failed

to satisfy the credit criteria, or subsequently

during the term of the Service Agreement that

Shipper no longer satisfies the credit criteria,

Shipper may still obtain credit approval from TLNG

if it elects to provide one of the following: (1)

an advance deposit; (2) a Standby Irrevocable

Letter of Credit; (3) security interest in

collateral found to be satisfactory to TLNG; or (4)

a guaranty, acceptable to TLNG, by another person

or entity which satisfies the credit appraisal. An

advance deposit, Standby Irrevocable Letter of

Credit, or security interest should at all times

equal the three highest Months of estimated usage

during the term of the Service Agreement.

 

(C) If Shipper's credit standing ceases to meet TLNG's

credit requirements during the period of service,

then TLNG has the right to require security or

prepayments as specified above. If satisfactory

security or prepayment is not tendered in a time

period as reasonably determined by TLNG, then TLNG

is not required to continue service.

 

(D) If Shipper is unable to maintain credit approval,

the Service Agreement shall terminate as of the

first day of the Month following written notice of

such termination by TLNG to Shipper.

 

2.4 Prepayment

 

To be considered valid, a request for firm service, other

than capacity release pursuant to Section 9, must be

accompanied by payment of the lesser of (1) the

applicable Reservation Charge for one Month or (2)

$10,000. Such payment must be made by Shipper to TLNG.

This payment plus the interest accrued from the date

payment is received until the date service commences

shall be used to offset Shipper's monthly bill. If

Shipper's request expires, is withdrawn, or TLNG declines

to tender a Service Agreement, TLNG shall refund

Shipper's payment plus the accrued interest from the date

payment is received until the refund is sent to Shipper.

For purposes of this section, accrued interest shall be

computed in a manner consistent with Section 154.501(d)

of the Commission's Regulations.