North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 01/14/2008, Docket: RP08-118-000, Status: Effective

Third Revised Sheet No. 129 Third Revised Sheet No. 129 : Effective

Superseding: Second Revised Sheet No. 129

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

12. CREDITWORTHINESS (Continued)

 

12.1 Creditworthiness for Firm Transportation Service (Continued)

 

(a) (Continued)

 

be established by NBP based upon the audited financial

statements for the Shipper's two most recent fiscal years,

all interim reports, and any other relevant information.

 

An equivalent rating may be obtained in one of two ways:

 

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

rating service, Shipper may request an equivalent

rating as determined by NBP, based on the financial

rating methodology, criteria and ratios for the

industry of the Shipper 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 Shipper's two most recent

fiscal years, all interim reports, and any other

relevant information.

 

(ii) If Shipper's debt is not rated by a recognized debt

rating service, Shipper may, at its own expense,

obtain a private rating from a debt rating service

acceptable to NBP, or request that an independent

accountant or financial advisor, mutually acceptable

to NBP and the Shipper, prepare an equivalent

evaluation based on the financial rating methodology,

criteria, and ratios for the industry of the Shipper

as published by the above rating agencies.

 

(b) Shipper will be deemed to be non-credit-worthy if it is

rated below a BBB-/Baa3 equivalent standard by any rating

agency or if its credit limit is insufficient to cover

Shipper's total collateral requirement, as described in

Paragraph 12.6 of these General Terms and Conditions of

Service. If Shipper does not establish or maintain

creditworthiness as described above, or if Shipper's credit

limit as determined by NBP is insufficient to cover

Shipper's contractual obligations, Shipper has the option of

receiving transportation service under this FERC Gas Tariff

by providing to NBP one of the following alternatives:

 

 

(Continued)