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.