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