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;