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.