Elba Express Company, L.L.C.

Original Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-342-000, Status: Effective

Original Sheet No. 31 Original Sheet No. 31

 

(d) COMPANY shall not be required to perform or continue to perform

services under a transportation Service Agreement for any SHIPPER

who is or has become insolvent, or who fails to demonstrate or

maintain creditworthiness, or who fails to make payments pursuant

to Section 15 hereof (except if SHIPPER has disputed a bill and

made provision for such payment in accordance with Section 15.3

hereof); provided, however, such SHIPPER may receive or continue

to receive service if SHIPPER provides (i) where the service is

associated with a permanent release of capacity associated with

the original construction of COMPANY's facilities or an expansion

of COMPANY's facilities, either (x) the proposed Acquiring

Shipper, at the time of such permanent release has a credit rating

of not less than Investment Grade (taking into account for this

purpose the lowest published rating of S&P and Moody's if both

such rating agencies have published ratings in respect of such

proposed replacement shipper or assignee), or (y) the proposed

Acquiring Shipper provides a guarantee from a credit provider

that, at the time of such permanent release or assignment, has a

credit rating of not less than Investment Grade (taking into

account for this purpose the lowest published rating of S&P and

Moody's if both such rating agencies have published ratings in

respect of such proposed replacement credit support provider), and

in all cases (z) the credit support is equivalent in amount for

the portion of capacity being permanently released, the duration,

and the other material applicable terms contained in the Form of

Guarantee, Appendix E, of these General Terms and Conditions, as

the credit support previously agreed to in the RELEASING SHIPPER's

precedent agreement related to such capacity being released or

(ii) for service not associated with a permanent release, the

greater of the credit support agreed to for its Service Agreement

or the following:

 

(i) makes a security deposit in an amount equal to the cost of

performing the maximum transportation service for SHIPPER

for the lesser of the remaining primary term, or of any

extension, of the Service Agreement, and a three (3) month

period;

 

(ii) furnishes good and sufficient surety, as determined by

COMPANY in its reasonable discretion, in an amount equal to

the cost of performing the maximum transportation service

for SHIPPER for the lesser of the remaining primary term, as

may be extended, of the Service Agreement and a three (3)

month period; or