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. 68E Original Sheet No. 68E

 

GENERAL TERMS AND CONDITIONS

 

satisfactory and there is no bona fide basis for questioning Shipper's

creditworthiness, subject to the provisions of § 9.2 of these General Terms

and Conditions.

 

(e) Notwithstanding the provisions of § 9.1(b), above, in the

event Southern Trails constructs new facilities to provide service, in whole

or in part, to a Shipper, Southern Trails may require from the Shipper

security in an amount up the Shipper's pro rata share of the cost of such

facilities. Security hereunder may be in any of the forms available under §

9.1(b) of these General Terms and Conditions, at Shipper's choice. Southern

Trails is only permitted to recover the cost of facilities once, either

through rates or through this provision. As Southern Trails recovers the cost

of these facilities through its rates, the security required shall be reduced

accordingly. Where facilities are constructed to serve multiple Shippers, an

individual Shipper's obligation hereunder shall be for no more than its

proportionate share of the cost of the facilities. This provision is in

addition to and shall not supersede or replace any other rights that Southern

Trails may have regarding the construction and reimbursement of facilities.

 

(f) Southern Trails shall not take any action under this § 9.1

which conflicts with any order of the U.S. Bankruptcy Court.

 

9.2 Deterioration of Credit.

 

(a) (i) If at any time Southern Trails reasonably determines,

based on adequate information available to it, that a Shipper is no longer

creditworthy under this § 9 of these General Terms and Conditions, or if

Shipper fails to maintain assurance of future performance under this § 9 of

these General Terms and Conditions, Southern Trails may notify such Shipper

in writing (which writing shall set forth the basis for Southern Trails'

decision) that it has five (5) Business Days to provide Southern Trails with

security consistent with this § 9 of these General Terms and Conditions. Such

security shall be adequate to cover all charges for one Month's advance

service.

 

(ii) In addition, within thirty (30) Days after such

notification, the Shipper must fully comply with the means for adequate

assurance of future performance, covering three (3) full Months of advance

service from the end of such 30-Day notice period, as provided under this § 9

of these General Terms and Conditions. If the Shipper has not satisfied the

requirements in either of the prior two (2) sentences by the end of the

specified notice period, Southern Trails may immediately suspend service to

Shipper. Southern Trails may terminate service once it has complied with the

procedures set forth further in this Section below, including the requisite

prior notice.