Sg Resources Mississippi, L.L.C

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index



Effective Date: 03/01/2008, Docket: RP08-184-000, Status: Effective

Original Sheet No. 161 Original Sheet No. 161 : Pending






a replacement Letter of Credit no later than 120 days prior to the

expiration of the then-effective Letter of Credit. SGRM will

return the expiring Letter of Credit to Customer within five (5)

days of the date the Replacement Letter of Credit becomes



(2) each Letter of Credit shall be in form and substance

satisfactory to SGRM, and shall provide for partial drawdowns and,

without limiting the generality of the foregoing, shall be issued

by a financial institution acceptable to SGRM that is rated at

least BBB- by Standard and Poor's Corporation and Baa3 by Moody's

Investor Services, Inc.; and


(3) in addition to all other remedies available to SGRM at law or

in equity, if Customer fails to provide a replacement Letter of

Credit in accordance with this Section 31.7(a), SGRM may draw upon

the expiring Letter of Credit to the full amount thereof and apply

the funds so drawn in payment in whole or in part of the

obligations of Customer under each or any of Customer's Storage

Service Agreements.


(b) Customer shall provide to SGRM, to secure its

obligation to SGRM pursuant to each of Customer's Storage Service

Agreements, a Guarantee granted to SGRM by Customer's direct or

indirect parent (the "Guarantor") with an Acceptable Credit

Rating. The Guarantee shall be in a form acceptable to SGRM and

the provisions of this Section shall apply to the Guarantor as if

the Guarantor were the Customer.


(c) If Customer has requested, SGRM may accept other

forms of Financial Assurances to secure Customer's obligations

under the Storage Service Agreements, provided that SGRM may

reject or accept such other forms of Financial Assurances in a

manner that is not unduly discriminatory; or


(d) Customer shall prepay for service in an amount as

set forth immediately below, provided that such prepayments shall

be considered collateral held for security and not advance

payments for services and that Customer may deposit its prepayment

funds into an interest-bearing escrow account established by

Customer granting SGRM access to the account for payment of

services under Customer's Storage Service Agreement(s).


The dollar value of the Financial Assurances set forth above in

this Section 31.7 to be provided by Customer shall be in an amount

equal to: (1) in the case of Firm Storage Services to be provided

by SGRM using existing facilities, reservation charges payable at

the rate specified in Customer's bid for service or Storage

Service Agreement for a period of three (3) Months or the duration

of the Customer's bid or Storage Service Agreement, whichever is

shorter; (2) in the case of Interruptible services to be provided

by SGRM using existing facilities, the Interruptible charge(s)

calculated on a one hundred percent (100%) load factor basis

payable for a period of three (3) Months or the duration