Quest Pipelines (Kpc)

Second Revised Volume No. 1

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Effective Date: 02/01/2008, Docket: RP08-174-000, Status: Effective

Original Sheet No. 118 Original Sheet No. 118 : Effective

 

6.3 Upon notification by KPC that Shipper has failed to satisfy the

credit criteria, or subsequently during the term of the Service

Agreement no longer satisfies the credit criteria such Shipper

may still obtain credit approval by KPC if it elects to provide

one of the following: (a) an advance deposit equal to the fee

charged for performing the requested service for three (3)

months; (b) a Standby Irrevocable Letter of Credit; (c) security

interest in collateral found to be satisfactory to KPC; (d) a

guaranty, acceptable to KPC, by another person or entity which

satisfies credit appraisal. An advance deposit, Standby

Irrevocable Letter of Credit, or security interest should at all

times equal the three highest Months of estimated usage during

the term of the Service Agreement.

 

6.4 At any time after the Shipper is determined to be noncreditworthy

by KPC, the Shipper may initiate a creditworthiness re-

evaluation. As part of the re-evaluation request, the Shipper

should either update or confirm in writing the prior information

provided to KPC related to the Shipper's creditworthiness. Such

update should include any event(s) that the Shipper believes

could lead to a material change in the Shipper's

creditworthiness.

 

6.5 After KPC's receipt of Shipper's request for re-evaluation,

including all required information pursuant to NAESB WGQ Standard

0.3.8 ("Shipper's Request"), within five (5) Business Days, KPC

should provide a written response to the Shipper's Request. Such

written response should include either a determination of

creditworthiness status, clearly stating the reason(s) for KPC's

decision, or an explanation supporting a future date by which a

re-evaluation determination will be made. In no event should

such re-evaluation determination exceed twenty (20) Business Days

from the date of the receipt of the Shipper's Request unless

specified in KPC's tariff or if the parties mutually agree to

some later date.

 

6.6 If Shipper's credit standing ceases to meet KPC's credit

requirements during the period of service, then KPC has the right

to require security or prepayment as specified in 6.3 above. If

security or prepayment is not tendered in a time period as

reasonably determined by KPC, then KPC is not required to

continue service.