Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 05/05/2003, Docket: RP03- 64-000, Status: Suspended

First Revised Sheet No. 1203 First Revised Sheet No. 1203 : Suspended

Superseding: Original Sheet No. 1203

GENERAL TERMS AND CONDITIONS

Section 5

(Continued)

 

 

(iv) Evaluation of whether any significant collection

lawsuits or judgments are outstanding against

Customer, which could seriously affect Customer's

ability to meet its current obligations and/or to

remain solvent.

 

5.3 Security Requirements

 

(a) Based upon the review of the criteria in Section 5.2, Gulf

South shall have the right to require Customer to provide

security in order for service to commence or continue as

provided below:

 

(i) A cash prepayment deposit or irrevocable letter

of credit, satisfactory in form and substance

to Gulf South, from a bank or other financial

institution acceptable to Gulf South. The

amount of such prepayment deposit or letter of

credit shall equal: (1) for firm contracts

greater than or equal to one (1) year, twelve

(12) months worth of demand charges (SCO based

upon estimated average fees), (2) for firm

contracts that are less than one (1) year, the

full value of all demand charges (SCO based

upon estimated average fees). To the extent

the Customer creates imbalances that are owed

Gulf South that exceeds the security, Gulf

South has the right to seek additional security

to cover the value of the imbalance or

terminate or suspend the agreement. If Gulf

South elects to terminate or suspend a

Customer's Service Agreement due to inadequate

security or Customer's failure to timely

provide additional security, Gulf South shall

provide a Customer a five (5) day written

notice. Once Gulf South provides written

notice of its intent to suspend or terminate

Customer's Service Agreement, Gulf South will

conform the Customer's receipts to deliveries

in order to limit further transportation

imbalances from being created. If the agent