Monroe Gas Storage Company, LLC

Original Volume No. 1

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Effective Date: 04/29/2009, Docket: RP09-447-002, Status: Effective

Substitute Original Sheet No. 116 Substitute Original Sheet No. 116

Superseding: Original Sheet No. 116

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

2. CONTRACTING FOR STORAGE SERVICE (Continued)

 

2.3 Creditworthiness (Continued)

 

(c) Alternative Forms of Security (Continued)

 

(2) Potential Customer/Customer may provide a guaranty of all of

Customer's obligation under its service agreement(s) with

Operator as stipulated in Section 2.3(c) these General Terms

and Conditions granted to Operator by the Potential

Customer/Customer's parent, affiliate or third party with a

credit rating of at least the Minimum Acceptable Credit

Rating, which guarantee shall be in form and substance

acceptable to Operator. A form of guaranty is available from

Operator.

 

(3) Potential Customer/Customer may prepay Customer's obligation

under its service agreement(s) with Operator as stipulated

in Section 2.3(c) these General Terms and Conditions,

provided that such prepayments shall be considered

collateral held for security and not advance payments for

services. Prepayment amounts shall be deposited in an

interest bearing escrow account established by Potential

Customer/Customer and Operator reasonably determines that

such account is satisfactory. The escrow bank must be

acceptable to Operator. The escrow agreement shall provide

for prepayment amounts to be applied against Potential

Customer/Customer's obligation under its service

agreement(s) with Operator and shall grant Operator a

security interest in such amounts as an assurance of future

performance. The escrow agreement shall specify the

permitted investments of escrowed funds so as to protect

principal, and shall include only such investment options as

corporations typically use for short-term deposit of their

funds. If Operator is required to draw down the funds in

escrow, Potential Customer/Customer shall replenish such

funds no later than five (5) Business Days.

 

(4) Potential Customer/Customer may provide such other form of

security as mutually acceptable to Potential

Customer/Customer and Operator.