Millennium Pipeline Company, L. L. C.

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

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

(Continued)

 

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.