Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 09/10/2007, Docket: RP07-567-000, Status: Effective

Original Sheet No. 72B Original Sheet No. 72B : Effective





Unless otherwise agreed, the credit assurance must at all times maintain a

value specified above equal to the highest estimated charges during the term

of the Service Agreements. Any deposit held by Transporter pursuant to

Section 3.9 shall accrue simple interest at the Federal Funds Rate. Upon

Shipper’s request, Transporter will remit the balance of the interest to

Shipper within thirty days, provided, however, that Transporter shall not be

required to remit interest to Shipper more often than every thirty days.


Transporter has the right to seek additional security to cover the value of

any imbalance owed Transporter by a non-creditworthy Shipper. The

imbalances shall be valued at the “Spot Market Price” which shall be

defined, for each Dth on each applicable Day on which the gas is owed as the

midpoint of the range of prices reported for "Chicago city gates" as

published in Platts Gas Daily price survey or any successor publication,

less applicable transportation charges. Furthermore, Transporter has the

right to seek security to cover the estimated value of a future monthly

imbalance for non-creditworthy Shippers as follows: For a non-creditworthy

new Shipper, a security amount equal to 10% of such Shipper’s estimated

monthly usage multiplied by the Estimated Imbalance Rate as described below.

For a non-creditworthy existing Shipper, a security amount equal to such

Shipper’s largest monthly imbalance owed to Transporter over the most recent

12-month period multiplied by the Estimated Imbalance Rate. The term

"Estimated Imbalance Rate" shall equal the average of the NYMEX future

prices for the available 12-month period as such prices close on the day the

Estimated Imbalance Rate is determined.


(d) Notwithstanding the foregoing requirements, if Transporter

constructs new facilities to accommodate a Shipper, Transporter may require

credit assurance in an amount up to Shipper’s proportionate share of the

cost of the new facilities. This credit assurance may be requested at any

time before or after the in-service date of the facilities, to the extent

mutually agreed to as a condition of the construction. As Transporter

recovers the cost of these facilities through its rates, the credit

assurance required will be reduced accordingly. Specifically, any credit

assurance provided by a Shipper related to new facilities shall be returned

to that Shipper in equal monthly amounts over the term of its Service

Agreement for service related to the new facilities or as otherwise mutually

agreed by Transporter and Shipper. This requirement is in addition to and

shall not supersede or replace any other rights that Transporter may have

regarding the construction of and reimbursement for facilities.