| Liberty Gas Storage L.L.C. |
|
Second Revised Sheet No. 154 : Effective |
| FERC Gas Tariff |
|
Supersedes First Revised Sheet No. 154 |
| Liberty Gas Storage L.L.C. |
GENERAL TERMS AND CONDITIONS
(Continued)
32.3 Upon determination by Liberty that Customer has failed to satisfy or subsequently during
the term of the Service Agreement no longer satisfies the credit criteria, or if guarantor fails to
continue to satisfy the credit criteria, Liberty will notify Customer by certified mail and email,
within 10 days of such determination, of the reasons for such determination. Such Customer may still
obtain credit approval by Liberty if it elects to provide one of the following:
(a) an advance deposit which shall be considered collateral held for security and not a pre-payment of
services; provided, however, that any deposit shall earn interest at the Commission-approved rate or shall
be made into an interest-bearing escrow account to which Liberty shall have access to payments for services
if needed;
(b) a standby irrevocable letter of credit issued by a bank to Liberty's satisfaction;
(c) security interest in collateral found to be satisfactory to Liberty; or
(d) a guarantee, acceptable to Liberty, by another person or entity which satisfies credit
appraisal criteria set forth in this Section 32.
32.4 If Customer obtains credit approval by providing an advance deposit or other credit
instrument and then subsequently satisfies the credit criteria, Liberty shall return to Customer any
such advance deposit with interest. Customer shall continue to provide such advance deposit or credit
instrument for a period of three Months following the termination of service, unless Customer pays all
of the amounts of any invoices for service as reasonably determined by Liberty prior to that time.
32.5 For a Service Request on Liberty's existing facilities, the amount of the advance
deposit, standby irrevocable letter of credit, security interest or guarantee shall not exceed an
amount equal (a) for firm storage service, three Months of reservation charges, and (b) for
interruptible storage or related services, three Months of projected usage charges, at the maximum
applicable unit rate hereunder. For a Service Request for which Liberty has agreed to construct new
facilities, the amount of the advance deposit, standby irrevocable letter of credit, security interest
or guarantee should at all times equal (a) where the new facilities will enable Liberty to serve more
than one Customer, Customer's share of the cost of the new facilities as reasonably determined by
Liberty on a not unduly discriminatory basis and (b) where the new facilities will enable Liberty to
serve only Customer, the entire cost of the new facilities.
32.6 Termination or suspension of service and a Service Agreement does not affect the validity
or requirement of a letter of credit or guarantee in effect at the time service is terminated or
suspended.
32.7 If Customer's or guarantor's credit standing ceases to meet Liberty's credit requirements
during the period of service, then Liberty has the right to require security or a deposit as specified
herein. If security or a deposit in an amount equal to one month of reservation or usage charges, as
applicable, is not tendered within five (5) business days of Liberty's written request, then Liberty is
not required to continue service. In addition, if such security or deposit is not increased to an
amount equal to three months of reservation or usage charges, as applicable, within 30 days of
Liberty's written request, then Liberty is not required to continue service. If Customer is unable to
maintain credit approval, the executed Service Agreement shall terminate upon at least 30 days' written
notice to Customer and the Commission. Liberty retains the right to pursue additional remedies, enforce
any rights and affect any collection due to Liberty.
| Issued by: William Rapp, Senior Counsel |
| Issue date: 09/28/07 |
|
Effective date: 11/01/07 |