Questar Pipeline Company
First Revised Volume No. 1
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Effective Date: 02/16/2009, Docket: RP09-216-000, Status: Effective
Original Sheet No. 69F Original Sheet No. 69F
GENERAL TERMS AND CONDITIONS
(Continued)
(ii) Nothing herein shall be read to preclude Questar from
requiring, and enforcing for the term of the initial contracts, more than
three (3) Months of fees and charges for advance service as security in
agreements supporting an application for a certificate to construct new or
expanded facilities. For purposes of this paragraph, the term "initial
contract" shall include any replacement contract entered into upon a permanent
release of Capacity under an initial contract.
(c) Where a shipper selects the prepayment option under §
8.1(b) of these General Terms and Conditions, the prepayment amounts shall be
deposited in an interest-bearing escrow account if such an escrow account has
been established by the shipper which meets the criteria set out in this
paragraph. The costs of establishing and maintaining the escrow account shall
be borne by the shipper. The escrow bank must be rated at least AA or better
and shall not be affiliated with the shipper. The escrow arrangement shall
provide for the prepayment amounts to be applied against the shipper's
obligation under its service agreements with Questar and shall grant Questar a
security interest in such amounts as an assurance of future performance. The
escrow agreement shall specify the permitted investments of escrowed funds so
as to protect principal, and shall include only such investment options as
corporations typically use for short-term deposit of their funds. Such escrow
account shall at all times maintain the amount of prepayment required under §
8.1(b) of these General Terms and Conditions. If Questar is required to draw
down the funds in escrow, it will notify the shipper and the shipper must
replenish such funds within three (3) Business Days after such notice.
(d) Questar's credit appraisal procedures involve the
establishment of dollar credit limits on a standardized, nondiscriminatory
basis. To the extent that a shipper's accounts with Questar do not exceed such
limit, and shipper has met all creditworthiness requirements as determined in
periodic credit reviews by Questar, which reviews may be conducted on at least
an annual basis, no new credit appraisals shall be required when an existing
Agreement is amended or a request for a new Agreement is made, provided that
shipper's payment history has been satisfactory and there is no bona fide
basis for questioning shipper's creditworthiness, subject to the provisions of
§ 8.2 of these General Terms and Conditions.