Tuscarora Gas Transmission Company
Original Volume No. 1
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Effective Date: 12/01/1995, Docket: CP93-685-003, Status: Effective
Original Sheet No. 39 Original Sheet No. 39 : Effective
GENERAL TERMS AND CONDITIONS
(d) such other information as Transporter may reasonably require to
assess Shipper's creditworthiness including, but not limited to,
Shipper's credit history with other providers of natural gas
service.
In the event Shipper cannot provide the information specified in this
section, Shipper shall, if applicable, provide the requested information
for its parent company. A prospective Shipper need not provide the
information requested in this section if the Shipper prepays for service,
posts a letter of credit, or obtains a guarantee in accordance with Section
3.5 hereunder.
3.5 Shipper's Creditworthiness. A Shipper will be considered
creditworthy if it meets the following conditions:
(a) Shipper's long-term unsecured debt securities, at the time it
enters into a Transportation Service Agreement (or a precedent
agreement therefor) and throughout the term thereof, are rated BBB
or better by Standard & Poor's Corporation or Baa2 by Moody's
Investor Service; or
(b) For a Shipper requesting service under the FT Rate Schedule,
the Shipper prepays for service or provides a letter of credit or
surety bond for an amount equal to the sum of the Reservation Charge
for a 12 month period and the Commodity Charge applicable to the
proposed transportation service (assuming 100 percent load factor
usage) for a three month period or for the duration of the contract,
whichever is shorter, such letter of credit to be issued by a
commercial bank or financial institution located in the United States
whose long-term unsecured debt securities are rated A or better by
Standard & Poor's Corporation, A or better by Dominion Bond Rating
Service, or A2 or better by Moody's Investor Service, Inc.; or
(c) For a Shipper requesting service under the IT Rate Schedule,
the Shipper prepays for service or provides a letter of credit for
an amount equal to the Commodity Charge applicable to the proposed
transportation service multiplied by the Maximum Transportation
Quantity requested for a three month period, such letter of credit
to be issued by a commercial bank or financial institution located
in the United States whose long-term unsecured debt securities are
rated A or better by Standard & Poor's Corporation, A or better by
Dominion Bond Rating Service, or A2 or better by Moody's Investor
Service, Inc.; or