GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
12. CREDITWORTHINESS (Continued)
12.4 Creditworthiness for Interruptible Transportation Service
NBP shall not be required to perform or to continue interruptible
transportation service under this FERC Gas Tariff 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. 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 it
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 BB+ by Standard
& Poors, Ba1 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 interruptible transportation will
be established by NBP based upon the audited financial
statements for the Shipper's two (2) most recent fiscal
years, all interim reports, and any other relevant
information.
(Continued)
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Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: January 23, 2004 Effective on: February 28, 2003
Filed to comply with order of the Federal Energy Regulatory Commission, Docket
No. RP02-363, et al., issued December 24, 2003 |