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. 71 First Revised Sheet No. 71

Superseding: Original Sheet No. 71

 

GENERAL TERMS AND CONDITIONS

 

capital in excess of par or stated value, and other free and clear equity

reserve accounts, if any. Overthrust defines tangible net worth for a

corporation as the sum of the capital stock, paid-in capital in excess of par

or stated value, and other free and clear equity reserve accounts less

goodwill, patents, unamortized loan costs or restructuring costs, and other

intangible assets. Only actual tangible assets are included in Overthrust's

assessment of creditworthiness. Tangible net worth is compared with the net

present value of a Shipper's obligations to Overthrust under its contracts in

applying the 15% test in the prior paragraph.

 

(iv) If a Shipper does not meet the criteria described

above, then such Shipper may request that Overthrust evaluate its

creditworthiness based upon the level of its current and requested service on

Overthrust relative to the Shipper's current and future ability to meet its

obligations. Such credit appraisal shall be based upon Overthrust's

evaluation of the following information and credit criteria:

 

(1) S&P and Moody's opinions, watch alerts, and

rating actions and reports, ratings, opinions and other actions by Dun and

Bradstreet and other credit reporting agencies will be considered in

determining creditworthiness.

 

(2) Consistent financial statement analysis will be

applied by Overthrust to determine the acceptability of Shipper's current and

future financial strength. Shipper's balance sheets, income statements, cash

flow statements and auditor's notes will be analyzed along with key ratios

and trends regarding liquidity, asset management, debt management, debt

coverage, capital structure, operational efficiency and profitability.

 

(3) Results of bank and trade reference checks and

credit reports must demonstrate that Shipper is paying its obligations in a

timely manner.

 

(4) Shipper must not be operating under any chapter

of the bankruptcy laws and must not be subject to liquidation or debt

reduction procedures under state laws and there must not be pending any

petition for involuntary bankruptcy of the Shipper. An exception may be made

for a Shipper which is a debtor in possession operating under Chapter XI of

the Federal Bankruptcy Act if Overthrust is assured that the service billing

will be paid promptly as a cost of administration under the federal court's

jurisdiction, based on a court order in effect, and if the Shipper is

continuing and continues in the future actually to make payment.

 

(5) Whether Shipper is subject to any lawsuits or

judgments outstanding which could materially impact its ability to remain

solvent.