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.