Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 08/15/2007, Docket: RP07-526-000, Status: Effective

Original Sheet No. 110B Original Sheet No. 110B : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

3. CONTRACTING FOR SERVICE (continued)

 

3.4 Credit Evaluation (continued):

 

Security in the form of an advance deposit shall accrue

interest to the benefit of Customer from the date Saltville

receives such deposit. Interest on such advance deposits

shall be calculated monthly at the most recently established

91-day Treasury Bill auction rate, as published in The Wall

Street Journal. Alternatively, a Customer providing

security in the form of an advance deposit may deposit such

security into an interest-bearing escrow account,

established by Customer at Customer's expense, to which

account Saltville shall have unrestricted access in the

amount of an invoice upon presentment of an invoice for the

payment of services provided to Customer.

 

(c) Once every twelve (12) months, Customer shall provide

Saltville with updated financial information in the form

required in Section 3.4(a) above. In addition, if Saltville

becomes aware that there may be a potentially material

change in the financial condition of an existing Customer,

Saltville shall require Customer to promptly resubmit all of

the financial information required in Section 3.4(a) above.

Saltville shall re-evaluate Customer's creditworthiness

based upon the updated information provided by Customer

pursuant to Section 3.4(a) above. If Customer's credit

standing ceases to meet Saltville's credit requirements at

any time during the period of service, then Saltville has

the right to require security as specified in Section 3.4(b)

above. If the credit standing of any entity issuing a

letter of credit and/or guaranty in support of Customer's

obligations ceases to meet Saltville's credit appraisal at

any time during the period of service, then Saltville has

the right to require Customer to provide replacement

security that satisfies the requirements of Section 3.4(b)

above.

 

(d) In the event any information provided by Customer pursuant

to Sections 3.3 and 3.4 with respect to a request for new

service or a request that would result in a Billing

Amendment materially changes prior to execution of the new

service agreement or Billing Amendment, as applicable, or

Customer learns that such information may materially change

prior to execution of the service agreement or Billing

Amendment, as applicable, Customer shall be obligated to

provide written notice of such material changes to

Saltville. Saltville shall require Customer to resubmit all

of the financial information required in this Section 3.4

within ten (10) Business Days of the identification of the

material change. If such updated financial information is

not received within ten (10) Business Days, the request for

service will be deemed null and void. Saltville shall re-

evaluate Customer's creditworthiness based upon the updated

information provided by Customer pursuant to this Section

3.4.