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. 161 Original Sheet No. 161 : Effective

GENERAL TERMS AND CONDITIONS

13. EVALUATION OF CREDIT (Contd.)

13.1 (Contd.)

A. (Contd.)

4. (Contd.)

b. Consistent financial statement analysis will

be applied by Transporter to determine the

acceptability of Shipper's current and future

financial strength. Shipper's balance sheets,

income statements, cash flow statements and

auditor's notes will be analyzed along with

key ratios and trends regarding liquidity,

asset management, debt management, debt

coverage, capital structure, operational

efficiency and profitability.

c. Results of bank and trade reference checks and

credit reports must demonstrate that Shipper

is paying its obligations in a timely manner.

d. Shipper must not be operating under any

chapter of the bankruptcy laws and must not be

subject to liquidation or debt reduction

procedures under state laws and there must not

be pending any petition for involuntary

bankruptcy of the Shipper. An exception may

be made for a Shipper which is a debtor in

possession operating under Chapter XI of the

Federal Bankruptcy Act if Transporter is

assured that the service billing will be paid

promptly as a cost of administration under the

federal court's jurisdiction, based on a court

order in effect, and if the Shipper is

continuing and continues in the future

actually to make payment.

e. Whether Shipper is subject to any lawsuits or

judgments outstanding which could materially

impact its ability to remain solvent.

f. Whether Shipper has or has had any delinquent

balances outstanding for services provided

previously by Transporter and whether Shipper

is paying and has paid its account balances

according to the terms established in its

service agreements (excluding amounts as to

which there is a good faith dispute).