GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
12. CREDITWORTHINESS (Continued)
12.1 Creditworthiness for Firm Transportation Service (Continued)
(b) (Continued)
(i) Guarantee: Shipper may obtain a guarantee of financial
performance in a form satisfactory to NBP from a
corporate affiliate of the Shipper or a third party,
either of which meets the creditworthiness standard
discussed above. For these Shippers the credit limit
will be based upon the financials of the guarantor. A
form of guarantee is available on NBP's website.
(ii) Cash Prepayment: A Shipper may prepay for service via
cleared check or wire transfer. For Existing Capacity,
the amount of prepayment must be sufficient to cover the
value of three (3) months' worth of applicable
transportation charges. For contracts with a term of less
than one (1) year, the amount of prepayment must be
sufficient to cover the value of up to three (3) months'
worth of applicable transportation charges. For Expansion
Capacity on lateral facilities, the pipeline will not
require a deposit greater than Shipper's pro rata share
of the total facilities costs, and such deposit will
be reduced over time in proportion to Shipper's
contract term, consistent with Paragraph 12.3 of these
General Terms and Conditions. NBP will pay interest on
prepayments at the applicable monthly "Federal Funds
(effective)" rate published in the Federal Reserve
Statistical Report H.15.
(iii) Letter of Credit: Shipper may post a Letter of Credit
(LC) in a form acceptable to NBP. A form of LC is
available on NBP's website. For Existing Capacity, the
amount of LC must be sufficient to cover the value of
three (3) months' worth of applicable transportation
charges. For contracts with a term of less than one (1)
year, the amount of the LC must be sufficient to cover
the value of up to three (3) months' worth of applicable
transportation charges. For Expansion Capacity on lateral
facilities, the pipeline will not require an LC greater
than Shipper's pro rata share of the total facilities
costs, and such LC will be reduced over time in
proportion to Shipper's contract term, consistent with
Paragraph 12.3 of these General Terms and Conditions.
(Continued)
|