Pinnacle Pipeline Company

ORIGINAL VOLUME NO. 1

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Effective Date: 10/08/2003, Docket: RP04-102-001, Status: Effective

Original Sheet No. 152 Original Sheet No. 152 : Effective

 

 

Shipper may still receive service under the

applicable Rate Schedule provided it

furnishes and maintains for the term of the

Transportation Agreement: (i) a written

guarantee in a form satisfactory to

Transporter from a third party which is

creditworthy as determined above, (ii) an

irrevocable standby letter of credit in an

amount equal to the contract on a 100% load

factor basis, for contracts with a term of

twelve (12) months or longer the amount of

the irrevocable standby letter of credit

will not exceed twelve (12) months

valuation, and contracts with a term less

than twelve (12) months the irrevocable

standby letter of credit will be the lesser

of three (3) months valuation or the term

of the contracts, (iii) a pre-payment in

the amount equal to the contract on a 100%

load factor basis, for contracts with a

term of twelve (12) months valuation, and

for contracts with a term less than twelve

(12) months the pre-payment will be the

lesser of three (3) months valuation or the

term of the contracts, or (iv) other

security acceptable to Transporter.

 

(d) To permit Transporter to conduct a

creditworthiness review, a Shipper shall,

upon request by Transporter, render to

Transporter: (i) a completed credit

application, and (ii) complete financial

statements prepared in accordance with

generally accepted accounting principles

or, for non-U.S.-based Shippers, prepared

in accordance with equivalent principles.

Upon requesting transportation service, a

Shipper must submit to Transporter a

completed credit application unless it has

previously submitted such to Transporter

within the last twelve (12) months. If a

Shipper elects to provide an irrevocable

standby letter of credit or pre-payment,

the completed credit application, and

financial statement requirement is waived

by Transporter. Transporter shall have the

right to review a Shipper's

creditworthiness on an ongoing basis and