Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 07/16/2001, Docket: RP01-457-000, Status: Effective

First Revised Sheet Number 301 First Revised Sheet Number 301 : Superseded

Superseding: Original Sheet Number 301

GENERAL TERMS AND CONDITIONS

 

 

40. OFF-SYSTEM SERVICES

 

From time to time, Company may obtain transportation and/or storage

services on other interstate or intrastate pipelines in order to

render services on behalf of its customers. Such services will be

subject to Northern Border's open access tariff and currently

effective rates that are subject to revision from time to time.

 

41. CREDIT WORTHINESS

 

Company shall evaluate the credit worthiness of any Person that may

request services under this Tariff. Company shall not be required

to commence or continue services under this Tariff on behalf of any

Person who fails to establish or maintain credit worthiness as may

be required by Company. A Person's credit worthiness shall be

reviewed on a continuing basis. Credit worthiness shall be based on

the level of service requested.

 

Company shall evaluate a Person based on the following credit

criteria:

 

1) current financial reports; whereby Company shall apply

consistent evaluation practices in determining the working

capital, profitability trends, net worth, cash flow, and

overall financial condition,

 

2) information from credit rating agencies or bank/trade

references to determine the manner in which a Person's

payment obligations are met,

 

3) prompt payment of obligations to Company on a consistent

basis as reflected in an on-going business relationship with

Company, and

 

4) a person shall not be operating under a federal, state, or

other applicable bankruptcy law or judgment subject to

liquidation, reorganization, arrangement, adjustment,

composition, or appointment of a receiver, trustee, or

assignee of the Person's property.

 

A Person that fails to meet the credit criteria may also become

creditworthy by providing and maintaining one of the following

credit alternatives as required by Company: (a) a guaranty from a

creditworthy party, (b) a standby letter of credit from a

creditworthy bank equal to an amount not to exceed twelve (12)

months of estimated contractual obligations or the lesser of

contract term, or (c) other security as is acceptable to Company.