GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
12. CREDITWORTHINESS (Continued)
12.1 Creditworthiness for Firm Transportation Service (Continued)
(b) (Continued)
(iv) Any other security mutually agreed upon by Shipper and
NBP. Such other security shall be accepted on a
nondiscriminatory basis.
12.2 Credit Standards for Capacity Release
(a) Long Term Capacity Release: The standards for Firm
Transportation Service apply. However, pursuant to
Paragraph 19.3 of this FERC Gas Tariff, a Releasing Shipper
has the option of waiving the creditworthiness requirements
for temporary releases of capacity for as long as the
Releasing Shipper maintains compliance with NBP's
creditworthiness requirements.
(b) Short Term Capacity Release: The standards for Firm
Transportation Service apply. However, pursuant to
Paragraph 19.3 of this FERC Gas Tariff, a Releasing Shipper
has the option of waiving the creditworthiness requirements
for temporary releases of capacity for as long as the
Releasing Shipper maintains compliance with NBP's
creditworthiness requirements.
12.3 Credit requirements for pipeline expansion projects will be
separately identified within the nondiscriminatory project
requirements included as part of any open season for expansion
capacity. The amount of security initially required for Expansion
Capacity on lateral facilities will be determined by NBP and may be
up to the cost of the facilities to be constructed ("Maximum
Allowable Security Requirement or MASR"). Where new lateral
facilities serve multiple shippers, an individual shipper's maximum
security obligation will be for no more than its proportionate
share of the MASR ("Shipper's Maximum Security Obligation or
SMSO"). Subsequent to Expansion Capacity on lateral facilities
being placed into service, the SMSO shall be reduced in proportion
to contract term. Shipper's actual security requirement, as
identified within the open season project requirements, may be
equal to or less than the SMSO ("Shipper's Actual Security
Obligation or SASO"). When the SMSO equals the SASO held by NBP,
NBP shall thereafter return Shipper's security on either a monthly
basis or as mutually agreed with Shipper consistent with the
(Continued)
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