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First Revised Sheet Number 301 First Revised Sheet Number 301 : Superseded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