Bobcat Gas Storage

Original Volume No. 1

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Effective Date: 10/15/2008, Docket: RP08-608-000, Status: Effective

Original Sheet No. 128 Original Sheet No. 128

GENERAL TERMS AND CONDITIONS

(Continued)

24. MISCELLANEOUS (Continued)

24.7 Creditworthiness - Determinations and Requirements (Continued)

(e) Creditworthiness - Financial Assurances

(1) For the purposes of this Section 24.7(e), the

following terms shall have the meanings set forth

below:

(A) "Acceptable Credit Rating" means a Credit Rating

no lower than BBB- from Standard and Poor's

Rating Service or Baa3 from Moody's Investor

Services, Inc.;

(B) "Credit Rating" means the rating given to

Customer's unsecured Long Term Debt by Standard

and Poor's Rating Service or Moody's Investor

Services, Inc.;

(C) "Collateral Requirement" means an amount equal

to (i) in the case of firm service to be

provided by Bobcat using existing facilities,

reservation charges payable at the rate

specified in Customer's bid for service or

Storage Service Agreement for a period of three

(3) Months or the duration of the Customer's bid

or Storage Service Agreement, whichever is

shorter, (ii) in the case of Interruptible

services to be provided by Bobcat using existing

facilities, the Interruptible charge(s)

calculated on a one hundred percent (100%) load

factor basis payable for a period of three (3)

Months or the duration of the Customer's Storage

Service Agreement, whichever is shorter; or

(iii) for service that requires Bobcat to

construct new facilities, an amount determined

by Bobcat prior to the start of construction

that is reasonable in light of the risks of the

construction project, not to exceed Customer's

proportional share of the cost of the facilities

to be constructed (which amount shall be reduced

as Customer pays off the obligation for

construction of new facilities); plus, for each

(i), (ii) and (iii) the Market Value of Loaned

Gas, where applicable.

(D) "Market Value of Loaned Gas" shall mean the

value obtained by multiplying 100% of the

outstanding cumulative balance of Gas loaned by

Bobcat to Customer under all Storage Services

Agreements by the Henry Hub spot price as

calculated by Bobcat from time to time.