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