Bobcat Gas Storage

Original Volume No. 1

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Effective Date: 10/15/2008, Docket: RP08-608-000, Status: Effective

Original Sheet No. 131 Original Sheet No. 131





24. MISCELLANEOUS (Continued)


24.7 Creditworthiness - Determinations and Requirements (Continued)


(e) Creditworthiness - Financial Assurances (Continued)


(4) Forms of Financial Assurances (Continued)


(A) Letter of Credit (Continued)


(iv) With respect to any Letter of Credit

delivered by Customer in satisfaction of a

Collateral Requirement, in all cases the

costs and expenses of establishing,

renewing, substituting, canceling and

increasing the amount of any Letter of

Credit or cash deposit provided in

satisfaction of the Collateral Requirement

shall be borne by the Customer (including,

but not limited to, reasonable costs,

expenses and attorneys' fees of Bobcat).


(B) A guaranty granted to Bobcat by Customer's

Guarantor with an Acceptable Credit Rating

("Guaranty"). The Guaranty shall be in form and

substance acceptable to Bobcat and the

provisions of this Section shall apply to the

Guarantor as if the Guarantor were the Customer.


(C) Customer may prepay for service in an amount

equal to Customer's Collateral Requirement,

provided that such prepayments shall be

considered collateral held for security and not

advance payments for services. Prepayment

amounts shall be deposited in an interest

ªbearing escrow account established by Customer.

The escrow bank must be acceptable to Bobcat and

the escrow agreement shall provide for

prepayment amounts to be applied against

Customer's obligation under its Storage Service

Agreement with Bobcat and shall grant Bobcat a

security interest in such amounts as an

assurance of future performance. The escrow

agreement shall specify the permitted

investments of escrowed funds so as to protect

principal, and shall include only such

investment options as corporations typically use

for short-term deposit of their funds. If Bobcat

is required to draw down the funds in escrow,

Customer shall replenish such funds within five

(5) Business Days.