Mogas Pipeline LLC (Fomerly Missouri Interstate Gas)
First Revised Volume No. 1
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Effective Date: 06/01/2008, Docket: CP06-407-002, Status: Effective
Original Sheet No. 90 Original Sheet No. 90 : Pending
GENERAL TERMS AND CONDITIONS
(Continued)
36. Creditworthiness (continued)
36.1 Credit Appraisal Information - Transporter shall perform a
credit appraisal, if applicable, by utilizing any or all of the
following information which Shipper shall furnish to Transporter:
(a) A copy of Shipper's most recent audited financial
statements;
(b) A copy of Shipper's most recent twelve (12) month audited
financial statement or Annual Report and, if applicable, SEC 10-K
form;
(c) A list of Shipper's affiliates, including parent and
subsidiaries, if applicable;
(d) A bank reference and two trade references. The results of
the reference checks must show that Shipper's obligations are
being paid on a reasonably prompt basis;
(e) Any credit reports from credit reporting agencies, which are
available; and/or,
(f) Such other information as may be mutually agreed to by the
parties.
36.2 Credit Evaluation - For purposes herein, the determination
of Shipper's creditworthiness a shipper shall be deemed
creditworthy if:
(a) Shippers senior unsecured debt is rated at least BBB by
Standard & Poors, Baa2 by Moody's, or an equivalent rating as
determined by Transporter based on financial information
specified in Section 36.2; or
(b) The Shipper prepays for service, or provides an
irrevocable letter of credit to secure payment of an amount equal
to:
(i) For Rate Schedule FT Shippers - the sum of the
monthly reservation charges applicable to the proposed
service for a three (3) month period; or
(ii) For Rate Schedule IT Shippers - an amount equal to
the commodity charges applicable to the proposed service for
a three (3) month period.
Maintenance of Creditworthiness - If Shipper's credit
standing ceases to meet Transporter's credit requirements during
the period of service, then Transporter has the right to require
security as specified herein. Upon notification by Transporter
that Shipper no longer meets Transporter's creditworthiness
standards, Shipper must, within five (5) business days, pay for
one month of service in advance to continue service.