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