Tuscarora Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-08-000, Status: Effective

Original Sheet No. 76 Original Sheet No. 76

 

GENERAL TERMS AND CONDITIONS

 

3. REQUESTS FOR SERVICE/CREDIT EVALUATIONS (Continued)

 

 

3.5 Creditworthiness for Firm Transportation (continued)

 

(b) (Continued)

 

(4) Any other security mutually agreed upon by Shipper and

Transporter. Such other security shall be accepted on a non-

discriminatory basis.

 

 

3.6 Creditworthiness for Replacement Shippers.

 

The standards for Firm Transportation Service apply. However, a

Releasing Shipper has the option of waiving the creditworthiness

requirements for temporary releases of capacity for as long as the

Releasing Shipper maintains compliance with Transporter's

creditworthiness requirements.

 

3.7 Creditworthiness for Expansion Shippers.

 

Security requirements for Expansion Capacity will be separately

identified within the non-discriminatory project requirements included

as part of any open season for Expansion Capacity. The amount of

security initially required for Expansion Capacity on lateral

facilities will be determined by Transporter and may be up to the cost

of the facilities to be constructed ("Maximum Allowable Security

Requirement or MASR"). Where new lateral facilities serve multiple

shippers, an individual shipper's maximum security obligation will be

for no more than its proportionate share of the MASR ("Shipper's

Maximum Security Obligation or SMSO"). Subsequent to Expansion

Capacity on lateral facilities being placed into service, the SMSO

shall be reduced in proportion to contract term. Shipper's actual

security requirement, as identified within the open season project

requirements, may be equal to or less than the SMSO ("Shipper's Actual

Security Obligation or SASO"). When the SMSO equals the SASO held by

Transporter, Transporter shall thereafter return Shipper's security on

either a monthly basis or as mutually agreed with Shipper consistent

with the reduction in SMSO. Transporter is only permitted to recover

the cost of Expansion Capacity on lateral facilities once through

either transportation rates or, in the event of shipper default, by

means of the security provided through this provision.