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
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-
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.