Sg Resources Mississippi, L.L.C
Original Volume No. 1
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Effective Date: 03/01/2008, Docket: RP08-184-000, Status: Effective
Original Sheet No. 162 Original Sheet No. 162 : Pending
GENERAL TERMS AND CONDITIONS
(Continued)
of the Customer's Storage Service Agreement, whichever is shorter;
or (3) for service that requires SGRM to construct new facilities,
an amount determined by SGRM prior to the start of construction
that is reasonable in light of the risks of the construction
project, not to exceed Customer's proportional share of the cost
of the facilities to be constructed (which amount shall be reduced
as Customer pays off the obligation for construction of new
facilities); plus, for each of (1), (2) and (3), the market value
of any quantities of Gas loaned pursuant to Customer's Hub
Services Agreement. SGRM shall recompute the market value of any
quantities of Gas loaned to a Customer pursuant to Customer's Hub
Services Agreement on a daily basis. Customer shall be required
to provide additional Financial Assurances upon two (2) Business
Days' notice any time SGRM's recomputation indicates a dollar
amount for Financial Assurances that exceeds the level of
Financial Assurances previously posted by Customer pursuant to
this Section 31.7 by ten percent (10%) or more.
31.8 Customer's obligation to maintain an Acceptable
Credit Rating or to provide Financial Assurances shall continue
for so long as the Parties are bound by the Storage Service
Agreements and all transactions entered into thereunder. This
obligation shall terminate when Customer has performed or
satisfied all of its obligations under the Storage Service
Agreements and, upon such termination, SGRM shall return to
Customer, if applicable:
(a) the Letter of Credit and funds held by SGRM as
security pursuant to Section 31.7(a) then in its possession but
only to the extent it has not then applied such funds pursuant to
this FERC Gas Tariff to the debts, expenses, costs, assessments
and liabilities payable by Customer to SGRM pursuant to the
provisions of the Storage Service Agreement(s);
(b) the Guarantee held by SGRM pursuant to Section
31.7(b);
(c) any security accepted by SGRM pursuant to Section
31.7(c); or
(d) any amount prepaid by Customer pursuant to Section
31.7(d) not required to pay charges for service rendered under the
Storage Service Agreements.