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

Original Sheet No. 1204 Original Sheet No. 1204 : Suspended

 

GENERAL TERMS AND CONDITIONS

Section 5

(Continued)

 

fails to post adequate security, its Customer(s) have

the right to provide Gulf South adequate security to

ensure that their service remains uninterrupted. For

all interruptible services, the Customer shall

provide security based upon the highest three (3)

months of usage during the previous twelve (12) month

period for all interruptible transportation charges,

plus imbalances that the Customer has incurred on

Gulf South. If the Customer has not contracted for

interruptible transportation on Gulf South, Gulf

South will establish its initial security

requirements based upon the Customer's anticipated

usage for a three (3) month period as determined by

the Customer and Gulf South's marketing

representative.

 

(ii) The security required in Section 5.3(a)(i) shall

remain in place until the earlier of the following:

(a) the Customer can satisfy Gulf South's credit

requirement or (b) the termination of the applicable

Service Agreement(s) including the resolution of all

invoices and imbalances.

 

(iii) In the event that the security established in Section

5.3(a)(i) is inadequate to cover the existing

exposure (credit and/or unpaid obligations) Gulf

South has with a Customer and Customer has gas in

storage or has an imbalance where payment is due

Customer from Gulf South and if Customer has failed

to provide adequate security as provided in Section

5.3(a)(i), then Gulf South can take title, at no

cost, to either (1) the gas in storage or (2) any

payments owed Customer, up to the amount of any

unpaid, non-disputed obligations the Customer owes

Gulf South. If Gulf South exercises its rights

under this provision, it shall notify Customer by fax

on the day it takes such actions. Customer shall

have the right to reclaim title to any gas in storage

if they provide the requested security in five (5)

days.