Clear Creek Storage Company, LLC

Original Volume No. 1

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Effective Date: 06/01/2000, Docket: CP98-256-002, Status: Effective

Original Sheet No. 48 Original Sheet No. 48 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

6.6 If no bids are received and the existing Customer

is willing to pay the maximum rate, the existing Customer

will be entitled to continue to receive service for whatever

term it chooses. However, due to the operational

constraints of the Clear Creek storage facility, that term

may not be less than one year. At the end of the term, the

existing Customer will again have the right of first refusal

to retain the capacity. Any Customer that acquires

available capacity according to this section will not be

required to repeat the bidding procedures outlined in

Section 4.6 of this tariff.

 

7. Creditworthiness

 

7.1 Clear Creek shall not be required to perform

Storage Service for a Customer who is, or has become,

insolvent; or who, at Clear Creek's request, fails within a

reasonable period to demonstrate creditworthiness. Clear

Creek shall apply consistent, non-discriminatory evaluation

practices to determine the acceptability of the Customer's

overall financial condition, working capital and

profitability trends.

 

7.2 Customer's creditworthiness may be shown by the

following criteria:

 

(1) Customer shall provide (i) current audited

financial statements, annual reports, 10-K reports or other

filings with regulatory agencies; (ii) a list of all

corporate affiliates, parent companies and subsidiaries; and

(iii) any available reports from credit reporting agencies.

 

(2) Customer must provide a bank reference and at

least two trade references. The results of reference checks

and any credit reports must show that Customer's obligations

are being paid on a prompt basis.

 

(3) Customer must confirm in writing that it is

not operating under any chapter of bankruptcy laws and must

not be subject to liquidation or debt reduction procedures,

such as an assignment for the benefit of creditors, or any

informal creditors' committee assignment. An exception may

be made for a Customer who is a debtor in possession

operating under Chapter XI of the Federal Bankruptcy Act,

but only with adequate assurances that billings will be paid

promptly as a cost of administration under the federal

court's jurisdiction.