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. 173 Original Sheet No. 173 : Effective

 

GENERAL TERMS AND CONDITIONS

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escrow account shall at all times maintain the amount of prepayment

required under Section 17.1(b) of these General Terms and Conditions.

If Trailblazer 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) Trailblazer'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

Trailblazer do not exceed such limit, and Shipper has met all

creditworthiness requirements as determined in periodic credit reviews

by Trailblazer, 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 Section 6.9 and 6.10 of these General Terms and

Conditions.

 

(e) In the event Trailblazer constructs new facilities

to accommodate a Shipper, Trailblazer may require from the Shipper

security in an amount up to the cost of such facilities. Security

hereunder may be in any of the forms available under Section 17.1(b) of

these General Terms and Conditions, at Shipper's choice. Trailblazer is

only permitted to recover the cost of facilities once, either through

rates or through this provision. As Trailblazer 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 Trailblazer may have regarding the construction and

reimbursement of facilities.

 

(f) Trailblazer shall not take any action under this

Section 17 which conflicts with any order of the U.S. Bankruptcy Court.

 

17.2 In order to obtain an Agreement under Rate Schedule

FTS, a Shipper must sign a consent and agreement, in a form acceptable

to Trailblazer, to pay all charges under the Agreement to the agent

designated by Trailblazer's lenders in the event the Shipper is notified

that an event of default has occurred under Trailblazer's loan

agreement.