Mobile Bay Pipeline Company

Second Revised Volume No. 1

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Effective Date: 02/01/1994, Docket: GT94- 18-000, Status: Effective

Original Sheet No. 97 Original Sheet No. 97 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

(b) Two (2) financial institution references and at least four

(4) trade references.

 

4.2 Credit Evaluation

 

(a) Transporter's credit evaluation procedures will result in

the establishment of maximum dollar credit limits on a

standardized nondiscriminatory basis for any applicant.

The amount owed Transporter by Shipper, including without

limitation the value of any imbalance gas, shall not at any

time exceed the maximum dollar credit limit established for

such Shipper.

 

(b) Transporter's standard objective credit criteria shall

include all of the following:

 

(i) The application of consistent credit evaluation

practices to determine the acceptability of

Shipper's overall financial condition, working

capital and profitability trends.

 

(ii) The results of reference checks and any credit

reports submitted in accordance with Section 4.1

above must show that Shipper's obligations are being

paid on a timely basis.

 

(iii) Consideration of whether Shipper or any parent

entity has pending a petition in bankruptcy or the

entry of a decree or order, continuing unstayed and

in effect for a period of sixty (60) consecutive

days, by a court having jurisdiction adjudging the

following:

 

1) declaring the Shipper as bankrupt or

insolvent;