Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2001, Docket: RP02- 14-000, Status: Effective

Original Sheet No. 55 Original Sheet No. 55 : Superseded

 

GENERAL TERMS AND CONDITIONS

(Continued)

3.7 Denial of Requests. Transporter may reject any request for service from a Requestor that fails to

meet Transporter's creditworthiness requirements unless Requestor provides assurance of payment as provided

in Section 3.8 below. Where service is requested under Rate Schedule PALS, Transporter may consider the

quantities which Requestor could owe Transporter in determining the level of service for which Requestor is

creditworthy. Grounds for rejection shall include, but shall not be limited to, Requestor's failure (a) to

show that Requestor's obligations are being paid in a timely manner, or (b) to provide reasonable assurance

that Requestor will be able to continue to pay its obligations in the future.

3.8 Assurance of Payment. If Transporter denies a request for service or does not approve the placement

of Requestor's name on the Approved Bidder List due to a failure to satisfy Transporter's creditworthiness

requirements, Requestor may obtain service or be placed on the Approved Bidder List if it provides

Transporter with assurance of payment in the manner set forth at Section 3.9 below and otherwise complies

with the ongoing creditworthiness requirements set forth in Section 3.9. If Requestor fails to tender such

assurance of payment within 10 days, or such longer time period reasonably established by Transporter,

Transporter may deny Requestor's request for service or reject any bid submitted by Requestor.

3.9 Creditworthiness of Shipper.

 

(a) Subject to the provisions of paragraphs (b) and (c) immediately below, Transporter shall not

be required to perform or to continue to perform service on behalf of any Shipper that (i) is or has become

insolvent, (ii) has applied for bankruptcy under Chapter 11 of the Bankruptcy Code or is subject to similar

proceedings under State or Federal Law, or (iii) fails, in Transporter's reasonable judgment, to demonstrate

minimal creditworthiness for all or any part of the service requested, based upon Transporter's

consideration of available credit data concerning Shipper and Shipper's past payment history, financial

statements, and credit reports.

 

(b) Transporter may require adequate assurance of payment for any service under this Tariff

requested by an insolvent or uncreditworthy Shipper. Such a Shipper may receive or continue to receive

service if it provides adequate assurance of payment for service within 15 days after the date of written

demand by Transporter. Adequate assurance of payment may include: