Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 402 Original Sheet No. 402 : Pending

 

 

GENERAL TERMS AND CONDITIONS

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If Natural concludes that a Shipper is non-creditworthy,

Natural shall provide written notice to Shipper within ten (10) days

after that determination is made. If requested by Shipper, Natural shall

provide a written explanation of the reasons for this determination. A

Shipper may challenge Natural's determination by providing a written

rebuttal to Natural's explanation within ten (10) days after the

explanation is provided by Natural. Natural shall respond to such a

rebuttal in writing within ten (10) days. Any reevaluation of credit by

Natural in response to such a rebuttal by the Shipper shall be based on

the credit criteria set out in this Section 16 and shall be performed as

provided in Section 5.12(c) of these General Terms and Conditions.

 

(b) (1) If a Shipper fails to satisfy the credit

criteria, such Shipper may still obtain or continue service hereunder if

Shipper, at its sole discretion, provides the security required under one

of the following options:

 

(i) payment in advance of all fees and

charges for three (3) months' service;

 

(ii) a standby irrevocable letter of credit

covering all fees and charges for three (3) months' service drawn upon a

bank acceptable to Natural;

 

(iii) security interest covering all fees and

charges for three (3) months' service in collateral provided by the

Shipper found to be satisfactory to Natural; or

 

(iv) guarantee of all fees and charges for

three (3) months' service by a person or another entity which does

satisfy the credit appraisal.

 

(2) Nothing herein shall be read to preclude Natural

from requiring, and enforcing for the term of the initial contracts, more

than three (3) months of fees and charges as security in agreements

supporting an application for a certificate to construct new or expanded

facilities, including on any replacement contract entered into upon a

permanent release of capacity under such an initial contract.

 

(3) Natural may also require security from

noncreditworthy Shippers for the value of gas loaned under any loan type

of service. The amount of security necessary to collateralize gas loans

shall be equal to the outstanding quantities previously loaned to the

Shipper as well as any additional quantities which Natural is obligated