Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 08/17/2004, Docket: RP03- 64-005, Status: Effective

Fifth Substitute Original Sheet No. 1205 Fifth Substitute Original Sheet No. 1205 : Effective

 

GENERAL TERMS AND CONDITIONS

Section 5

(Continued)

 

(4) Gulf South has the right to seek security to

cover the value of any imbalance owed Gulf South

by a non-creditworthy Customer. Such imbalances

shall be valued at the Index "Sell" Price

determined in accordance with the provisions of

Section 20 hereof. Such determination shall be

based upon the weekly prices that are available

at the time the imbalance occurred.

Furthermore, Gulf South has the right to seek

security to cover the estimated value of a

future monthly imbalance for non-creditworthy

Customers as follows: For a non-creditworthy

new Customer, a security amount equal to 10% of

such Customer's estimated monthly usage

multiplied by the Estimated Imbalance Rate as

described below. This security determination

for a non-creditworthy, new Customer shall be

used for the first seven months of service to

establish a historical record. Thereafter,

security for such Customer will be determined as

specified for a non-creditworthy existing

Customer. For a non-creditworthy existing

Customer, a security amount equal to such

Customer's largest monthly imbalance owed to

Gulf South over the most recent 12 month period

multiplied by the Estimated Imbalance Rate. The

term "Estimated Imbalance Rate" shall equal the

average of the NYMEX future prices for the

available 12 month period as such prices close

on the day the Estimated Imbalance Rate is

determined.

 

(b) Should a non-creditworthy Customer desire to earn interest

on cash prepayments required pursuant to the terms and

conditions hereof, a non-creditworthy Customer should

provide written notice to Gulf South of its desire to earn

interest on its cash prepayments. Gulf South will pay

interest on the amount of cash received, excluding any

Advance Payment as described in Section 5.3(c) below. The

interest payable shall be calculated based upon the actual

rate earned or the overnight rate available to Gulf South

for any time period where such security funds are on

deposit.