Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 09/10/2007, Docket: RP07-567-000, Status: Effective

First Revised Sheet No. 70 First Revised Sheet No. 70 : Effective

Superseding: Original Sheet No. 70

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 and/or the value of any imbalance owed 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 the time period

set forth in Section 3.9(c) 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) below,

Transporter shall not be required to provide or to continue to provide

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.