Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

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

Original Sheet No. 160 Original Sheet No. 160 : Effective

 

GENERAL TERMS AND CONDITIONS

 

13. EVALUATION OF CREDIT (Contd.)

 

13.1 (Contd.)

A. (Contd.)

3. As used in the prior paragraph, the term "tangible

net worth" means the excess of assets over

liabilities from an accounting standpoint, which is

also known as "capital." For example, in the case

of a corporation, tangible net worth is represented

by the capital stock, paid-in capital in excess of

par or stated value, and other free and clear equity

reserve accounts, if any. Transporter defines

tangible net worth for a corporation as the sum of

the capital stock, paid-in capital in excess of par

or stated value, and other free and clear equity

reserve accounts less goodwill, patents, unamortized

loan costs or restructuring costs, and other

intangible assets. Only actual tangible assets are

included in Transporter's assessment of

creditworthiness. Tangible net worth is compared

with the Net Present Value of a Shipper's

obligations to Transporter under its contracts in

applying the 15% test in the prior paragraph.

 

4. If a Shipper does not meet the criteria described

above, then such Shipper may request that

Transporter evaluate its creditworthiness based upon

the level of its current and requested service(s) on

Transporter relative to the Shipper's current and

future ability to meet its obligations. Such credit

appraisal shall be based upon Transporter's

evaluation of the following information and credit

criteria:

 

a. S&P and Moody's opinions, watch alerts, and

rating actions and reports, ratings, opinions

and other actions by Dun and Bradstreet and

other credit reporting agencies will be

considered in determining creditworthiness.