T.W. Phillips Pipeline Corp.

Original Volume No. 1

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Effective Date: 01/01/2010, Docket: RP10-141-000, Status: Effective

Original Sheet No. 43 Original Sheet No. 43

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

7.6.2. Cash Security Deposit – Shipper may provide a cash security deposit for

service via cleared check or wire transfer. The deposit must be suffic-

ient to cover the applicable reservation and commodity charges for three

(3) months of service and shall be maintained until Shipper meets Trans-

porter’s creditworthiness standards. Transporter will accrue interest on

cash security deposits based on interest rates established by the Commis-

sion;

 

7.6.3. Letter of Credit – Shipper may post a Letter of Credit in a form accept-

able to Transporter; or

 

7.6.4. Other Security – Shipper may provide such other security as Shipper and

Transporter may mutually agree upon.

 

7.7. Any suspension of service hereunder shall continue until Transporter is reasonably

satisfied that Shipper is creditworthy under this section or until Shipper has

provided adequate assurance of future performance under this section.

 

7.8. If Transporter determines that Shipper becomes creditworthy without security, any

security requirements under this section shall be terminated and any prepayment

amounts (including any applicable interest) released to Shipper from escrow with-

in five (5) business days after such determination.

 

7.9. Security Requirements for Expansion Capacity After Operational Commencement of

Transporter’s Initial Facilities – The security requirement for expansion capacity

available after operational commencement of Transporter’s Initial Facilities may

be identified in an open season, in Transporter’s postings, or in agreements with

Shippers. The amount of security required for such expansion capacity or on

lateral facilities will be determined by Transporter and may be up to the cost of

the facilities to be constructed. Where new facilities serve multiple shippers,

an individual Shipper’s maximum security obligation will be no more than its pro-

portionate share of the total cost of the new facilities.