Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 02/07/2008, Docket: RP08-156-000, Status: Effective

Second Revised Sheet No. 110 Second Revised Sheet No. 110 : Effective

Superseding: First Revised Sheet No. 110

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

3. CONTRACTING FOR SERVICE (continued)

 

3.4 Credit Evaluation (continued):

 

(b) Saltville shall not be required to perform or to continue

service under any Rate Schedule on behalf of any Customer

who is or has become insolvent or who, at Saltville's

request, fails within a reasonable period to demonstrate

creditworthiness. Upon notification by Saltville that a

Customer has failed to satisfy the credit criteria or

subsequently during the term of the service agreement no

longer satisfies the credit criteria, such Customer may

still obtain credit approval by Saltville if it pays any

outstanding balances due Saltville for service rendered or

has complied with Section 14.3 of the General Terms and

Conditions with regard to such balances and elects to

provide one of the following security:

 

(1) an advance deposit;

 

(2) a standby irrevocable letter of credit, acceptable to

Saltville, issued by a financial institution that

satisfies Saltville's credit appraisal;

 

(3) security interest in collateral found to be

satisfactory to Saltville; or

 

(4) a guarantee, acceptable to Saltville, by another

person or entity which satisfies Saltville's credit

appraisal.

 

Saltville shall provide such Customer with a written

statement supporting Saltville's request for the security

amount requested at the time such security is requested. If

Saltville rejects the security provided by Customer in

accordance with Section 3.4(b)(2)-(4) above, Saltville shall

re-issue its request for the security and include a written

explanation for the rejection of the security previously

provided by Customer. For a new Customer, or a Customer

requesting a Billing Amendment, such security shall be

calculated as follows:

 

(i) For firm storage service, an amount equal to the three

(3) highest Months during a Contract Year or the

duration of Customer's Firm Storage Service Agreement,

whichever is shorter, worth of Reservation Charges at

the rate specified in Customer's Firm Storage Service

Agreement;