Millennium Pipeline Company, L. L. C.
Original Volume No. 1
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Effective Date: 11/01/2009, Docket: RP10-17-000, Status: Effective
First Revised Sheet No. 70 First Revised Sheet No. 70
Superseding: Original Sheet No. 70
GENERAL TERMS AND CONDITIONS
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 include, but are not 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 in
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 will 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.
(b) Criteria for Creditworthiness Determination
(1) Acceptance of a Shipper's request for service and the
continuance of service are contingent upon the Shipper satisfying, on an
on-going basis, a credit appraisal by Transporter.
(2) Transporter will apply consistent evaluation practices to all
similarly situated Shippers to determine the Shipper's financial ability
to satisfy the payment obligations due to Transporter over the term of
the requested Service Agreement or PALS Transaction.