Panther Interstate Pipeline Energy, L.L.C.
Original Volume No. 1
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Effective Date: 02/01/2004, Docket: CP03-338-001, Status: Effective
Original Sheet No. 27 Original Sheet No. 27 : Effective
Shipper's rating is at BBB- or Baa3 and the short-term or long-
term outlook is Negative, Transporter may require further analysis
as discussed below); and (ii) the sum of reservation fees,
commodity fees and any other associated fees and charges for the
contract term is less than 15% of Shipper's tangible net worth.
If a Shipper has multiple transportation service agreements with
Transporter, then the total potential fees and charges of all such
service agreements shall be considered in determining
If Shipper does not meet the criteria described above, then
Shipper may request that Transporter evaluate its creditworthiness
based upon the level of service requested relative to the
Shipper's current and future ability to meet its obligations.
Transporter shall apply consistent evaluation practices to all
similarly situated Shippers to determine the Shipper's financial
ability to perform the payment obligations due to Transporter over
the term of the requested or existing transportation service
agreement. Such credit appraisal shall be based upon
Transporter's evaluation of the following information and credit
(a) S&P and Moody's opinions, watch alerts, and rating actions
and reports, rating, opinions and other actions by Dun and
Bradstreet and other credit reporting agencies will be
considered in determining creditworthiness.
(b) Consistent financial statement analysis will be applied by
Transporter 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.
(c) Results of bank and trade reference checks and credit
reports must demonstrate that a Shipper is paying its
obligations in a timely manner.
(d) 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. An