Questar Southern Trails Pipeline Company

Original Volume No. 1

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Effective Date: 06/15/2009, Docket: RP09-592-000, Status: Effective

Original Sheet No. 68D Original Sheet No. 68D

 

GENERAL TERMS AND CONDITIONS

 

(2) A standby irrevocable letter of credit covering

all fees and charges for three (3) Months' advance service drawn upon a bank

acceptable to Southern Trails;

 

(3) Security interest covering all fees and charges

for three (3) Months' advance service in collateral provided by the Shipper

found to be satisfactory to Southern Trails; or

 

(4) Guarantee of all fees and charges for three (3)

Months' advance service by a person or another entity which does satisfy the

credit appraisal.

 

(ii) Nothing herein shall be read to preclude Southern

Trails 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 § 9.1(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 Southern Trails and shall grant

Southern Trails 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 § 9.1(b) of these General Terms and Conditions. If

Southern Trails 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) Southern Trails' credit appraisal procedures involve the

establishment of dollar credit limits on a standardized, nondiscriminatory

basis. To the extent that a Shipper's accounts with Southern Trails do not

exceed such limit, and Shipper has met all creditworthiness requirements as

determined in periodic credit reviews by Southern Trails, 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