GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
12. CREDITWORTHINESS
12.1 Creditworthiness for Firm Transportation Service
NBP shall not be required to perform or to continue transportation
service under this FERC Gas Tariff, Original Volume No. 1, on
behalf of any Shipper who fails to comply with NBP's
creditworthiness standards. If Shipper is found by NBP to be non-
creditworthy, NBP will, upon request, inform Shipper in writing as
to the reasons Shipper has been deemed non-creditworthy.
If Shipper's credit standing ceases to meet NBP's credit
requirements during the period of service, Shipper must, within
five (5) business days, pay for one month of service in advance to
continue service. Shipper must, within thirty (30) days, provide an
acceptable guarantee or either a cash security deposit or letter of
credit, consistent with NBP's applicable creditworthiness
standards. For shippers utilizing Expansion Capacity on lateral
facilities, the security that must be provided within thirty (30)
days will not be greater than a shipper's pro rata share of the
total facilities costs, and such security will be reduced over time
in proportion to the shipper's contract term. If Shipper fails to
provide the required security within this time frame, NBP may
suspend service immediately. Further, NBP may provide simultaneous
written notice to Shipper and the Commission that it will terminate
service in thirty (30) days if Shipper fails to provide security.
Transporter also may exercise any other remedy available to
Transporter hereunder, at law or in equity. Shippers shall
provide, initially and on a continuing basis, financial statements,
evidence of debt and/or credit ratings, and other such information
as is reasonably requested by NBP to establish or confirm Shipper's
qualification for service. Credit limits will be established based
on the level of requested service and Shipper creditworthiness, as
established by the following:
(a) Creditworthiness must be evidenced by a rating for
unenhanced senior unsecured debt of at least BBB- by
Standard & Poors, Baa3 by Moody's, or an equivalent rating
as determined by NBP. In the event that a split rating
occurs between rating agencies, NBP will rely upon the lower
of the ratings. This rating must be a "foreign currency"
rating if the Shipper is domiciled outside of the United
States. "Local currency" ratings are unacceptable unless
the Shipper's local currency is US Dollars (e.g. Puerto
Rico). Shipper credit limits for firm transportation will
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