Arlington Storage Company, LLC

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index



Effective Date: 11/08/2009, Docket: RP10-67-000, Status: Effective

Original Sheet No. 155 Original Sheet No. 155







30.1 "Acceptable Credit Rating" means a Credit Rating for which Customer's Unsecured

Collateral Limit is greater than Customer's Credit Exposure.


30.2 "Credit Rating" means the rating given to Customer's unsecured long term debt by

Standard and Poor's Corporation ("S&P") or Moody's Investor Services, Inc.

("Moody's "). If both S&P and Moody's have issued a Credit Rating to Customer,

the lower rating shall apply for purposes of this FERC Gas Tariff.


30.3 "Credit Exposure" means an amount equal to: (1) in the case of Firm Storage

Services to be provided by ASC 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 ASC 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 of the Customer's

Storage Service Agreement, whichever is shorter; or (3) for service that requires

ASC to construct new facilities, an amount determined by ASC prior to the start

of construction that is reasonable in light of the risks of the construction

project, not to exceed Customer's proportional share of the cost of the facilities

to be constructed (which amount shall be reduced as Customer pays off the obligation

for construction of new facilities); plus, for each of (1), (2) and (3), the Market

Value of Loaned Gas.


30.4 "Market Value of Loaned Gas" means the Customer's Loan Balance for service under Rate

Schedules FL and IL, if any, multiplied by the sum of the NYMEX Henry Hub Swap and

the Dominion Basis Swap, as posted on the web site, for the period under

which the loaned gas is scheduled to be returned pursuant to the Customer's Storage

Service Agreement(s). ASC shall calculate Customer's Market Value of Loaned Gas on a

daily basis.


30.5 "Unsecured Collateral Limit" means the maximum amount of credit ASC will extend

to a Customer, without Customer providing Financial Assurances pursuant to this

Section 30, based upon the Customer's Credit Rating, as provided in the table below:



S&P AAA / Moody's Aaa : $25,000,000


S&P AA+ to AA- / Moody's Aa1 to Aa3 : $15,000,000


S&P A+ to A- / Moody's A1 to A3 : $5,000,000


S&P BBB+ to BBB- / Moody's Baa1 to Baa3 : $1,000,000


S&P BB+ and lower / Moody's Ba1 and lower : $0



30.6 "Material Adverse Change" means the failure of Customer at any time to satisfy

the requirements pertaining to creditworthiness set forth in Section 3.3(g),

to maintain an Acceptable Credit Rating or to maintain or reinstate one of the

forms of Financial Assurances specified in Section 30.10.


30.7 "Financial Assurances" means one or more of the forms of security set forth in

Sections 30.10(a), 30.10(b), 30.10(c) and 30.10(d), in accordance with and in

an amount as set forth in Section 30.10.