Vector Pipeline L.P.

Original Volume No. 1

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Effective Date: 01/01/2009, Docket: RP09-111-000, Status: Effective

Third Revised Sheet No. 156 Third Revised Sheet No. 156

Superseding: Second Revised Sheet No. 156

 

or other equivalent rating from agencies as determined by

Transporter. A Shipper who qualifies under this category

initially but is later downgraded below investment grade shall be

required to qualify under another category below.

 

2. A Shipper whose long term senior unsecured debt is not rated shall

be accepted as creditworthy if Transporter determines that,

notwithstanding the absence of a rating, the financial position of

Shipper (or an Affiliate who guarantees Shipper's obligations) is

acceptable to Transporter. Application for recognition may be

made at any time.

 

3. A Shipper who does not meet the requirements of sections 31.1 or

31.2 must provide security for its obligations at least 30 days

prior to commencement of transportation service, where

practicable, but in any event no later than at the time of the

first nomination for service under any newly executed

Transportation Agreement, or within thirty (30) days that it

ceases to be eligible at any time thereafter while it is bound

thereby, by either:

 

(a) Posting a Letter of Credit from a major banking institution

with an investment grade rating or pledging a cash deposit,

in either case in an amount equal to twelve (12) months of

the Reservation Charge for a firm agreement or for an

interruptible or other service agreement an irrevocable

letter of credit or other such equivalent financial

guarantees in an amount equal to thirty (30) days of service

at the agreed to rate. Such security shall be adjusted

annually to reflect any change in the Reservation Charge for

the succeeding twelve (12) months; or

 

(b) Providing other security acceptable to Transporter.

 

4. Transporter reserves the right to require any Shipper who does

not qualify under section 31.1, and who has not been accepted

pursuant to section 31.2, to provide evidence reasonably

satisfactory to Transporter that Shipper has and shall have the

capability of providing the security required by section 31.3

above. Any Shipper who qualifies under sections 31.1 or 31.2 by

virtue of an Affiliate guaranteeing the obligations of Shipper

shall provide an irrevocable agreement of said Affiliate

guaranteeing Shipper's obligations and shall provide such

guarantee to Transporter concurrently with its Transportation

Agreement in such form as is satisfactory to Transporter.