Questar Overthrust Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 06/15/2009, Docket: RP09-593-000, Status: Effective

First Revised Sheet No. 70 First Revised Sheet No. 70

Superseding: Original Sheet No. 70

 

GENERAL TERMS AND CONDITIONS

 

9.5 If no bids are received and the existing Shipper is willing to pay

the maximum rate, the existing Shipper will be entitled to continue to

receive service for whatever term it chooses. At the end of the term, the

existing Shipper may again exercise its right of first refusal to retain the

capacity.

 

9.6 If Overthrust and an existing Shipper enter into a contract to

continue service that was not subject to an evergreen clause or the right of

first refusal, the bidding requirements of § 7 will apply. However, any

Shipper that acquires available capacity according to this section will not

be required to repeat the bidding procedures outlined in § 7 of this tariff.

 

10. CREDITWORTHINESS

 

10.1 In evaluating requests for service and for other purposes under this

Tariff, Overthrust will perform a credit appraisal of shipper.

 

(a) Acceptance of a shipper's request for service and the

continuation of service to a shipper are contingent upon the shipper

complying with creditworthiness requirements of this § 10 on an on-going

basis. To determine creditworthiness, a credit appraisal shall be performed

in accordance with the following criteria:

 

(i) Overthrust shall apply consistent evaluation

practices to all similarly situated Shippers in determining any Shipper's

financial ability to perform its obligations to Overthrust over the term of

the requested or existing Service Agreement.

 

(ii) A Shipper will be deemed creditworthy if:

 

(1) its long-term unsecured debt securities are

rated at least BBB- by Standard & Poor's Corporation (S&P) and at least Baa3

by Moody's Investor Service (Moody's) (provided, however, that if the

Shipper's rating is at BBB- or Baa3 and the short-term or long-term outlook

is Negative, Overthrust may require further analysis as discussed below); and

 

(2) the sum of reservation fees, usage fees and any

other associated fees and charges for the contract term, on a net present

value basis, is less than 15% of Shipper's tangible net worth. If a Shipper

has multiple service agreements with Overthrust, then the total potential

fees and charges of all such service agreements shall be considered in

determining creditworthiness.

 

(iii) As used in the prior paragraph, the term "tangible

net worth" means the excess of assets over liabilities from an accounting

stand point, which is also known as "capital." For example, in the case of a

corporation, tangible net worth is represented by the capital stock, paid-in