Arkansas Western Pipeline Company

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index



Effective Date: 12/01/1993, Docket: CP92-570-005, Status: Effective

Original Sheet No. 48 Original Sheet No. 48 : Superseded




c. if Shipper is requesting service hereunder to be

implemented pursuant to section 311 of the Natural Gas

Policy Act, that Shipper has or will have prior to the

commencement of service certification by a local

distribution company or an intrastate pipeline company,

as those terms are defined in the Natural Gas Policy

Act, on whose behalf the transportation will be

performed that the transportation will be "on behalf

of" a local distribution company or intrastate pipeline

company as that term may be defined by the Commission.


4.8 At the time that an FTS Service Agreement is executed,

Shipper shall provide the names of the entities ultimately

receiving the gas (except where the Shipper is an LDC,

interstate pipeline or intrastate pipeline purchasing the

gas for its system supply) and verification that all end

users have executed sales contracts to use the

transportation service provided for in the FTS Service





Prior to execution of a Transportation Service Agreement, Shipper

shall be required to establish creditworthiness with Transporter.

Transporter shall not be required to execute an FTS Service

Agreement on behalf of any Shipper who fails to meet

Transporter's standard for creditworthiness. Any Shipper

failing to meet Transporter's standard for creditworthiness may

still receive service under this FTS Rate Schedule if Shipper

furnishes, and maintains for the term of the FTS Service

Agreement, acceptable to Transporter either (i) a guarantor

letter from a creditworthy party acceptable to Transporter, or

(ii) the following:


a. a standby letter of credit from a major bank acceptable to

Transporter in an amount equal to the charge for performing

the service for Shipper at the contracted MDQ for three

months; or


b. an escrow account for all Shipper's revenues from gas sales

associated with the transportation service to cover

transportation charges for three months. Transporter shall

not be required to initiate firm service under an FTS

Service Agreement to a Shipper who becomes insolvent.