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. 180 Original Sheet No. 180

 

GENERAL TERMS AND CONDITIONS

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(iv) guarantee of 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 by a person or another entity which does satisfy the credit

appraisal, except to the extent otherwise agreed; or

 

(v) other security acceptable to MEP.

 

(2) By mutual agreement, in lieu of credit support

under subsection (b)(1), MEP and Shipper may enter into an agreement

that provides that, in the event Shipper is deemed non-creditworthy,

MEP and its affiliates may net their respective payment obligations

to Shipper or its affiliates up to the amount of the deficient credit

support owed MEP under these provisions.

 

(3) The value of imbalance Gas and loaned Gas shall be

determined in accordance with this subsection (3). MEP may require

security from noncreditworthy Shippers for the value of imbalance Gas

either under an OBA or under Rate Schedules FTS and/or ITS and of Gas

loaned under Rate Schedule PALS. The amount of security necessary to

collateralize imbalance Gas and Gas loans shall be equal to the

outstanding quantities of imbalance Gas and of Gas previously loaned

to the Shipper plus any additional quantities of imbalance Gas which

MEP reasonably expects to incur during the ensuing 12 months based on

prior experience and any additional quantities of loaned Gas which

MEP is obligated to loan Shipper pursuant to an executed Request

Order, times the Index Price. The Index Price as used herein shall

mean, as applicable, the Midpoint Price published in Gas Daily on the

Day the imbalance volume is calculated or the loan is agreed upon

(which will generally reflect the previous Business Day's activity)

for the Operational Impact Area in which the imbalance or loan is to

occur. If such a price is not published by Gas Daily for that day,

MEP will use a price based on an appropriate index price in another

Gas Daily publication or another publication of common use in the

industry as mutually agreed upon by MEP and Shipper.