Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 12/01/2007, Docket: RP08- 34-000, Status: Effective

Original Sheet No. 157 Original Sheet No. 157 : Effective

 

 

GENERAL TERMS AND CONDITIONS

----------------------------

 

restructuring costs, and other intangible assets. Only actual

tangible assets are included in KMIP's assessment of

creditworthiness. In comparing the overall value of a Shipper's

contract to tangible net worth for credit evaluation purposes, KMIP

will compare the net present value of the demand or reservation

charge obligations under such contracts to Shipper's current

tangible net worth. If a Shipper has multiple service agreements

with KMIP, then the total potential fees and charges of all such

service agreements shall be considered in determining

creditworthiness.

 

(3) If Shipper does not meet the criteria

described above, then Shipper may request that KMIP evaluate its

creditworthiness based upon the level of service requested relative

to the Shipper's current and future ability to meet its obligations.

Such credit appraisal shall be based upon KMIP's evaluation of the

following information and credit criteria:

 

(i) S&P and Moody's opinions, watch

alerts, and rating actions and reports, rating, opinions and other

actions by Dun and Bradstreet and other credit reporting agencies

will be considered in determining creditworthiness.

 

(ii) Consistent financial statement

analysis will be applied by KMIP 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.

 

(iii) Results of bank and trade reference

checks and credit reports must demonstrate that a Shipper is paying

its obligations in a timely manner.

 

(iv) 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. An

exception may be made for a Shipper who is a debtor in possession

operating under Chapter XI of the Federal Bankruptcy Act if KMIP 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.