Trailblazer Pipeline Company
Fourth Revised Volume No. 1
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Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective
Original Sheet No. 172 Original Sheet No. 172 : Effective
GENERAL TERMS AND CONDITIONS
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such confirmations. In complying with the creditworthiness related
notifications pursuant hereto the Shipper and Trailblazer may mutually
agree to other forms of communication in lieu of internet e-mail
notifications.
(b) If a Shipper fails to satisfy the credit
criteria, such Shipper may still obtain or continue service hereunder
if it elects one of the following options:
(1) Payment in advance of all fees and charges
for three (3) months' advance service;
(2) A standby irrevocable letter of credit
covering all fees and charges for three (3) months' advance service
drawn upon a bank acceptable to Trailblazer;
(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 Trailblazer; 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.
Nothing herein shall be read to preclude
Trailblazer 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
Section 17.1(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
agreement(s) with Trailblazer and shall grant Trailblazer 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