American Midstream (Midla), LLC

Sixth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-483-000, Status: Effective

Original Sheet No. 181 Original Sheet No. 181

 

26. CREDIT EVALUATION

 

26.1 Pipeline's acceptance of a request for service is contingent upon Customer's

satisfying a credit appraisal by Pipeline. Pipeline shall apply, on a non-discriminatory

basis, consistent financial evaluation standards to determine the acceptability of

Customer's overall financial condition. Such credit appraisal and any further or ongoing

credit appraisal as may be necessary shall be based upon some, part or all of the

following information and criteria:

 

(a) Customer shall provide current financial statements, annual reports, 10-K reports or

other filings with regulatory agencies which discuss Customer's financial status; a list of

all corporate affiliates, parent companies and subsidiaries; and any reports from credit

reporting and bond rating agencies which are available.

 

(b) Customer shall provide a bank reference and at least two (2) trade references. The

results of reference checks and any credit reports submitted in (a) above must show that

Customer's obligations are being paid on a reasonably prompt basis.

 

(c) Customer shall confirm in writing that Customer is not operating under any chapter

of the bankruptcy laws and is not subject to liquidation or debt reduction procedures

under state laws, such as an assignment for the benefit of creditors, or any informal

creditors' committee agreement. An exception can be made for a Customer who is a

debtor in possession operating under Chapter 11 of the Federal Bankruptcy Act but only

with adequate assurance that the service billing will be paid promptly as a cost of

administration under the federal court's jurisdiction.

 

(d) Customer shall confirm in writing that Customer is not aware of any change in

business conditions which would cause a substantial deterioration in its financial

condition, a condition of insolvency or the inability to