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
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.