MidContinent Express Pipeline LLC
Original Volume No. 1
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Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective
Original Sheet No. 179 Original Sheet No. 179
GENERAL TERMS AND CONDITIONS
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(6) If MEP concludes that a Shipper is non-
creditworthy, MEP shall provide written notice to Shipper within ten
(10) days after that determination is made. If requested by Shipper,
MEP shall provide a written explanation of the reasons for this
determination. A Shipper may challenge MEP's determination by
providing a written rebuttal to MEP's explanation within ten (10)
days after the explanation is provided by MEP. MEP shall respond to
such a rebuttal in writing within ten (10) days. Any reevaluation of
credit by MEP in response to such a rebuttal by the Shipper shall be
based on the credit criteria set out in this Section 12.1(a) and
shall be performed as provided in Section 12.2 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 for all fees and
charges for twelve (12) Months of service for those Shippers
subscribing to capacity prior to the pipeline being in service and
for three (3) months for those Shippers subscribing to capacity after
the pipeline is in service, except to the extent otherwise agreed,
plus a reasonable amount for the value of imbalance gas and (in the
case of Rate Schedule PALS) for the value of loaned gas;
(ii) a standby irrevocable letter of credit
covering all such amounts for twelve (12) Months of service for those
Shippers subscribing to capacity prior to the pipeline being in
service and for three (3) months for those Shippers subscribing to
capacity after the pipeline is in service drawn upon a bank
acceptable to MEP, except to the extent otherwise agreed;
(iii) security interest covering all such
amounts for twelve (12) Months of service for those Shippers
subscribing to capacity prior to the pipeline being in service and
for three (3) months for those Shippers subscribing to capacity after
the pipeline is in service in collateral provided by the Shipper
found to be satisfactory to MEP, except to the extent otherwise
agreed;