Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 09/01/2007, Docket: CP06-354-002, Status: Effective

Original Sheet No. 159 Original Sheet No. 159 : Effective

 

GENERAL TERMS AND CONDITIONS

 

13. EVALUATION OF CREDIT

 

13.1 In evaluating requests for service and for certain other

purposes under this Tariff, Transporter will perform a credit

appraisal of Shipper.

 

A. Acceptance of a Shipper's request for service and the

continuation of service to a Shipper are contingent upon

the Shipper satisfying creditworthiness requirements on an

on-going basis. To determine creditworthiness, a credit

appraisal shall be performed in accordance with the

following criteria:

 

1. Transporter shall apply consistent evaluation

practices to all similarly situated Shippers in

determining any Shipper's financial ability to

perform the payment obligations due to Transporter

over the term of the requested or existing Service

Agreement.

 

2. A Shipper will be deemed creditworthy if (i) its

long-term unsecured debt securities are rated at

least BBB- by Standard & Poor's Corporation ("S&P")

and at least Baa3 by Moody's Investor Service

("Moody's") (provided, however, that if the

Shipper's rating is at BBB- or Baa3 and the short-

term or long-term outlook is Negative, Transporter

may require further analysis as discussed below);

and (ii) the sum of reservation fees, commodity fees

and any other associated fees and charges for the

contract term, on a Net Present Value basis, is less

than 15% of Shipper's tangible net worth. If a

Shipper has multiple service agreements with

Transporter, then the total potential fees and

charges of all such service agreements shall be

considered in determining creditworthiness.