Nautilus Pipeline Company, LLC

Original Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-498-000, Status: Effective

First Revised Sheet No. 121 First Revised Sheet No. 121 : Effective

Superseding: Original Sheet No.121

GENERAL TERMS AND CONDITIONS

 

 

10. SERVICE REQUESTS AND CONTRACTING FOR SERVICE con't

 

10.4 Creditworthiness

 

Transporter shall apply, on a non-discriminatory basis,

consistent financial evaluation standards to determine

the acceptability of a Shipper's overall financial

condition. Such credit appraisal and any further or

ongoing credit appraisal as may be necessary shall be

based mainly upon the information and criteria listed

in (a)-(e) below. Provided further, a Shipper with an

ongoing business relationship with Transporter shall

have no delinquent balances outstanding for services

made previously by Transporter, and Shipper must have

paid its account according to the established terms and

not made deductions or withheld payment for claims not

authorized by contract.

 

(a) Shipper shall provide current financial

statements, annual reports, 10-K reports or other

filings with regulatory agencies which discuss

Shipper's financial status; a list of all

corporate affiliates, parent companies and

subsidiaries; and any reports from credit

reporting and bond rating agencies which are

available. Transporter shall determine the

acceptability of the Shipper's overall financial

condition.

 

(b) Shipper shall provide a bank reference and at

least two trade references. The results of

reference checks and any credit reports submitted

pursuant to 10.4 (a) above must show that

Shipper's obligations are being paid on a

reasonably prompt basis.

 

(c) Shipper shall confirm in writing that Shipper is

not operating under any chapter of the bankruptcy

laws and is not subject to liquidation or debt

reduction procedures under state laws, such as an

assignment for the benefit of creditors, or any

informal creditors' committee agreement. An

exception can be made for a Shipper who is a

debtor in possession operating under Chapter 11 of

the Federal Bankruptcy Act but only if such

Shipper complies with Section 10.5 below.

 

(d) Shipper shall confirm in writing that Shipper is not aware

of any change in business conditions that would cause a

substantial deterioration in its financial condition, a condition

of insolvency, or the inability to exist as an ongoing business

entity.