Tuscarora Gas Transmission Company

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 07/01/2009, Docket: RP09-8-002, Status: Effective

Substitute Original Sheet No. 75 Substitute Original Sheet No. 75

Superseding: Original Sheet No. 75

 

GENERAL TERMS AND CONDITIONS

 

3. REQUESTS FOR SERVICE/CREDIT EVALUATIONS (Continued)

 

3.5 Creditworthiness for Firm Transportation (continued)

 

(b) If Shipper does not establish or maintain creditworthiness as

described above, Shipper may receive transportation service under

this FERC Gas Tariff by providing one or more of the following

credit alternatives:

 

(1) A cash security deposit for service via cleared check or wire

transfer. For Existing Capacity, the deposit must be sufficient

to cover up to the value of three months worth of reservation

charges. For Expansion Capacity on lateral facilities, the

pipeline will not require a deposit greater than Shipper's pro

rata share of the total facilities costs, and such deposit will be

reduced over time in proportion to Shipper's contract term.

Transporter will accrue interest on cash security deposits at the

actual interest rate earned. Interest will be paid by Transporter

on an annual basis each September 1 or at the time Shipper's

deposit is returned due to either a return to creditworthiness by

Shipper or the expiration of Shipper's Agreement(s); or

 

(2) A letter of credit. For Existing Capacity, the letter of credit

must be sufficient to cover up to the value of three months worth

of reservation charges. For Expansion Capacity on lateral

facilities, the pipeline will not require a letter of credit for

an amount greater than Shipper's pro rata share of the total

facilities costs, and such letter of credit will be reduced over

time in proportion to Shipper's contract term. Such letter of

credit or surety bond must 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, A or better by Dominion Bond Rating Service, or A2 or

better by Moody's Investors Service; or

 

(3) A guarantee from a corporate affiliate or a third party in an

amount equal to Shipper's total contractual obligation and, in a

form satisfactory to Transporter and for the term of the

Transportation Service Agreement. For such Shippers, the credit

limit will be based upon the financials of the guarantor. If

during the term of service the guarantor does not meet the

creditworthiness standards discussed above, then Transporter may

request additional credit alternatives if Transporter agrees to

release the original guarantor of all obligations at the time the

Shipper provides the additional assurances; or