White River Hub, LLC
Original Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 08/31/2009, Docket: RP09-853-000, Status: Effective
First Revised Sheet No. 98 First Revised Sheet No. 98
Superseding: Original Sheet No. 98
GENERAL TERMS AND CONDITIONS
(Continued)
(ii) Nothing herein shall be read to preclude White River
from requiring, and enforcing for the term of the initial contracts, more than
three (3) Months of fees and charges for advance service as security in
agreements supporting an application for a certificate to construct new or
expanded facilities. For purposes of this paragraph, the term "initial
contract" shall include any replacement contract entered into upon a permanent
release of Capacity under an initial contract.
(c) Where a Shipper selects the prepayment option under Section
8.1(b) of these General Terms and Conditions, the prepayment amounts shall be
deposited in an interest-bearing escrow account if such an escrow account has
been established by the Shipper which meets the criteria set out in this
paragraph. The costs of establishing and maintaining the escrow account shall
be borne by the Shipper. The escrow bank must be rated at least AA or better
and shall not be affiliated with the Shipper. The escrow arrangement shall
provide for the prepayment amounts to be applied against the Shipper's
obligation under its service agreements with White River and shall grant White
River a security interest in such amounts as an assurance of future
performance. The escrow agreement shall specify the permitted investments of
escrowed funds so as to protect principal, and shall include only such
investment options as corporations typically use for short-term deposit of
their funds. Such escrow account shall at all times maintain the amount of
prepayment required under Section 8.1(b) of these General Terms and
Conditions. If White River is required to draw down the funds in escrow, it
will notify the Shipper and the Shipper must replenish such funds within three
(3) Business Days after such notice.
(d) White River's credit appraisal procedures involve the
establishment of dollar credit limits on a standardized, nondiscriminatory
basis. To the extent that a Shipper's accounts with White River do not exceed
such limit, and Shipper has met all creditworthiness requirements as
determined in periodic credit reviews by White River, which reviews may be
conducted on at least an annual basis, no new credit appraisals shall be
required when an existing Agreement is amended or a request for a new
Agreement is made, provided that Shipper's payment history has been
satisfactory and there is no bona fide basis for questioning Shipper's
creditworthiness, subject to the provisions of Sections 8.2 and 17.5 of these
General Terms and Conditions.