Arlington Storage Company, LLC

Original Volume No. 1

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Effective Date: 08/24/2009, Docket: RP09-872-001, Status: Effective

Substitute Original Sheet No. 157 Substitute Original Sheet No. 157

Superseding: Original Sheet No. 157

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(d) Customer shall prepay for service in an amount as set forth immediately below,

provided that such prepayments shall be considered collateral held for security

and not advance payments for services and that Customer may deposit its prepayment

funds into an interest-bearing escrow account established by Customer granting ASC

access to the account for payment of services under Customer's Storage Service

Agreement(s).

 

The dollar value of the Financial Assurances set forth above in this Section 31.10 to be provided by

Customer shall be in an amount equal to Customer's Credit Exposure minus Customer's Unsecured Collateral

Limit. ASC shall re-compute the dollar value of Financial Assurances Customer is required to provide on

a quarterly basis. ASC shall notify Customer when such re-computation indicates that additional credit

support is required to comply with the requirements of this section based on a 10% increase in the daily

computation of the amount of Financial Assurances over the Financial Assurances previously provided by

Customer. Customer shall have two (2) Business Days to comply with a notification by ASC of insufficient

credit support.

 

31.11 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, ASC shall return to Customer, if applicable:

 

(a) the Letter of Credit and funds held by ASC as security pursuant to Section 31.10(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 ASC pursuant to the provisions of the Storage

Service Agreement(s);

 

(b) the Guaranty held by ASC pursuant to Section 31.10(b);

 

(c) any security accepted by ASC pursuant to Section 31.10(c); or

 

(d) any amount, with interest, prepaid by Customer pursuant to Section 31.10(d) not required

to pay charges for service rendered under the Storage Service Agreements. Additionally,

ASC shall return such amount, with interest, to Customer if Customer provides Financial

Assurances pursuant to Section 31.10(d) and subsequently is able to obtain and maintain

n Acceptable Credit Rating. In such event, ASC will be responsible for any expenses

elated to the maintenance of the escrow account described in Section 31.10(d).

 

32. DISPOSITION OF RETAINED QUANTITIES

 

In the event that ASC holds an auction for Gas quantities retained pursuant to Section 8 of

Rate Schedule FSS, Section 8 of Rate Schedule FP, Sections 2 or 8 of Rate Schedule ISS, Sections 2

or 8 of Rate Schedule IHBS, or Sections 2 or 8 of Rate Schedule IP, ASC shall post such quantities

time period from 7:00 a.m. until 11:00 a.m. CCT on the second Business Day following such posting.

ASC shall award purchase of the Gas to the Customer submitting the highest bid, and shall notify