Gulf Crossing Pipeline Company LLC

Original Volume No. 1

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Effective Date: 12/20/2008, Docket: RP09-61-000, Status: Effective

Original Sheet No. 501 Original Sheet No. 501

 

GENERAL TERMS AND CONDITIONS

Section 5

(Continued)

 

(a) Creditworthiness must be evidenced by a rating for

unenhanced senior unsecured debt of at least BBB- by

Standard & Poor's or Fitch, Baa3 by Moody's, or an

equivalent rating as determined by Gulf Crossing. In the

event that a split rating occurs between rating agencies,

Gulf Crossing will rely upon the lower of the ratings. If

Customer's rating is BBB- or Baa3 and the short-term

outlook as established by the rating agency relied upon is

negative, Gulf Crossing may require additional analysis of

that Customer's credit status before concluding that

Customer is creditworthy. Customer credit limits for

transportation will be established by Gulf Crossing based

upon the audited financial statements for the Customer's

two most recent fiscal years, all interim reports, and any

other relevant information including imbalances owed Gulf

Crossing and the historic management of imbalances.

 

If the Customer is not rated, Gulf Crossing may establish

creditworthiness based upon the Customer's parent having a

senior unsecured debt rating of at least BBB- by Standards

& Poor's or Fitch, or a rating of at least Baa3 by

Moody's. If Customer's parent is rated by multiple

agencies, Gulf Crossing shall use the lowest credit rating

to determine creditworthiness; provided, however, if

Customer's parent's rating is BBB- or Baa3 and the short-

term outlook as established by the rating agency relied

upon is negative, Gulf Crossing may require additional

analysis of that Customer's credit status before

concluding that Customer is creditworthy. If the Customer

and its parent do not have their own independent credit

ratings, then Gulf Crossing shall determine an equivalent

rating in one of two ways:

 

(i) If Customer's debt is not rated by a recognized debt

rating service, Customer may request an equivalent

rating as determined by Gulf Crossing, based on the

financial rating methodology, criteria and ratios for

the industry of the Customer as published by the

above rating agencies from time to time. In general,

such equivalent rating will be based on the audited

financial statements for the Customer's two most

recent fiscal years, all interim reports, and any

other relevant information.