Dominion South Pipeline Co., LP
Original Volume No. 1
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Effective Date: 12/16/2005, Docket: CP05- 77-001, Status: Effective
Original Sheet No. 1019 Original Sheet No. 1019 : Effective
GENERAL TERMS AND CONDITIONS
6.5 Credit assurance forms (Cont.)
(a) an irrevocable letter of credit to Pipeline, satisfactory to
Pipeline, verifying the Customer's creditworthiness;
(b) an estimate of its transportation requirements in advance and a
prepayment in advance for this service on Pipeline's system (which
shall be considered as security and not advance payments for
(c) a grant to Pipeline of a security interest in collateral, the value
of which is mutually agreed upon by Pipeline and Customer;
(d) a guarantee by another person or entity which satisfies Pipeline's
credit appraisal; or
(e) other mutually agreeable forms and value of credit assurances.
Unless otherwise agreed, the credit assurances must at all times maintain a value
specified above equal to the highest estimated charges during the term of service
Any prepayment held by Pipeline pursuant to Section 6.5(b) above shall accrue interest at
the rate specified in Section 154.501(d) of the Commission's regulations.
If Customer fails to pay any outstanding balances and/or provide the credit assurance
within the specified time period, Pipeline may immediately suspend service to Shipper.
Without waiver of any rights Pipeline may otherwise have under any and all service
agreement with Customer including, but not limited to, the right to sue Customer for
unmitigated damages resulting from Customer's breach of contract. Pipeline will not bill
Customer for service during the period of suspension of service.
To the extent that Pipeline suspends or terminates the service of a Replacement Customer,
Pipeline shall provide simultaneous notice to the Replacement Customer and Releasing
Customer via e-mail and facsimile.
In the event such Customer fails to furnish security under GT&C Section 6.5, Pipeline may,
upon 30 days prior written notice to the Customer and the Commission, terminate service.
In no event will a service agreement be terminated with less than 30 days notice.
Termination of the Service Agreement pursuant to this Section shall not waive any other
rights or remedies Pipeline may have.
Customer shall have the right to request that its credit status be reevaluated by
Pipeline at any time. Within five (5) Business Days of such request, Pipeline shall
provide a written response to Customer. If, as a result of the reevaluation, the
security requirements are terminated and the Customer previously had provided Pipeline a
prepayment as collateral, Pipeline will refund the prepayment amount and any interest on
the prepayment to Customer within five (5) Business Days.
6.8 Bankruptcy Code.
Pipeline may not take any action under this Section 6 which conflicts with any order of
the U.S. Bankruptcy Court.