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.