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. 130 Original Sheet No. 130

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

24. MISCELLANEOUS (Continued)

 

24.7 Creditworthiness - Determinations and Requirements (Continued)

 

(e) Creditworthiness - Financial Assurances (Continued)

 

(4) Forms of Financial Assurances (Continued)

 

(A) An irrevocable direct pay letter of credit in

form and substance acceptable to Bobcat issued

by a bank or other financial institution

reasonably acceptable to Bobcat and having a

long-term credit rating of at least AA- from

Standard and Poor's Rating Service or the

equivalent rating from Moody's Investor

Services, Inc. ( "Letter of Credit"), subject to

the following:

 

(i) each Letter of Credit shall be in effect

for the lesser of one (1) year or for the

term of service under the Storage Service

Agreement (the "Term") plus one hundred

twenty (120) days. If the Term plus one

hundred twenty (120) days is greater than

one (1) year, Customer shall ensure that

its obligation to Bobcat is secured

continuously, and accordingly shall

provide Bobcat with a replacement Letter

of Credit no later than one hundred twenty

(120) days prior to the expiration of the

then-effective Letter of Credit. Bobcat

will return the expiring Letter of Credit

to Customer within five (5) Business Days

of the date the Replacement Letter of

Credit becomes effective;

 

(ii) each Letter of Credit shall provide for

partial drawdowns;

 

(iii) in addition to all other remedies

available to Bobcat at law or in equity,

if Customer fails to provide a replacement

Letter of Credit in accordance with this

Section 24.7(e)(4)(A), Bobcat may draw

upon the expiring Letter of Credit to the

full amount thereof and apply the funds so

drawn in payment in whole or in part of

the obligations of Customer under each or

any of Customer's Storage Service

Agreements; and