Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 08/17/2004, Docket: RP03- 64-004, Status: Effective

Sec. Sub. Original Sheet No. 1207 Sec. Sub. Original Sheet No. 1207 : Effective

 

 

GENERAL TERMS AND CONDITIONS

Section 5

(Continued)

 

 

(iii) In the event that Customer has failed to provide

adequate security as provided herein or to pay any

non-disputed obligations, then Gulf South can take

title, at no cost, to any payments owed Customer by

Gulf South, up to the amount of any unpaid, non-

disputed obligations the Customer owes Gulf South.

 

(d) A non-creditworthy Customer may initiate a credit status

re-evaluation by providing a written request to Gulf

South. Customer's re-evaluation request must either

confirm or update the prior information provided to Gulf

South related to Customer's credit status. Such update

also must include a description of any item or event which

Customer believes warrants a change in the Customer's

credit status. Gulf South shall complete any such credit

re-evaluation within five (5) business days of a

Customer's request.

 

(e) The security required in Section 5.3(a) shall remain in

place until the earlier of the following: (1) such time as

the Customer can satisfy Gulf South's credit requirements

or (2) the termination of the applicable service

agreement(s) including the resolution of all invoices and

imbalances. Gulf South shall refund any collateral held

within 5 business days of either of these conditions being

met.

 

5.4 Notwithstanding the forgoing requirements, in the event Gulf South

constructs new facilities pursuant to Section 24.4, Gulf South may

require a cash prepayment deposit parental guaranty or an irrevocable

letter of credit, in addition to any security required under Section

5.3, from a Customer that does not meet the credit requirements

established in Section 5.2 hereof, in an amount up to the Customer's

pro rata share of the costs of the new facilities. On a monthly basis,

Gulf South shall review Customer's transportation throughput and

transportation commitments (or other criteria as the parties may

mutually agree) related to the new facilities and pursuant to such

evaluation will refund, cash prepayments or allow Customer to reduce an

irrevocable letter of credit on a pro rata basis, based upon Gulf

South's criteria evaluation and customer's payment history.