Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 05/05/2003, Docket: RP03- 64-000, Status: Suspended

Third Revised Sheet No. 1201 Third Revised Sheet No. 1201 : Suspended

Superseding: Second Revised Sheet No. 1201

 

GENERAL TERMS AND CONDITIONS

Section 5

(Continued)

 

(e) A warranty that the Customer, and its parent, has not

declared bankruptcy or is subject to liquidation or debt

reduction proceeding under state or federal guidelines.

 

 

5.2 Credit Evaluation

 

(a) Gulf South's credit evaluation procedures will result in the

establishment of maximum dollar credit limits on a

standardized nondiscriminatory basis for each Customer. The

total amount owed Gulf South by Customer for transportation

or storage service, including without limitation the value

of imbalance gas, shall not at any time exceed the maximum

dollar credit limit established for such Customer. In the

event the Customer's credit limit is exceeded, then Gulf

South will apply the standards of this Section and, if

necessary, has the right to seek additional security under

Section 5.3.

 

(b) Creditworthiness will be initially established by the

Customer having an investment grade credit rating or an un-

enhanced senior unsecured debt rating of at least BBB- by

Standard & Poor's or Fitch or a rating of at least Baa3 by

Moody's. To the extent the Customer is rated by multiple

agencies, Gulf South shall use the lowest credit rating to

determine the Customer's creditworthiness. If the Customer

does not have its own credit rating, then Gulf South shall

either calculate a credit rating based upon financial

analysis criteria and ratios, which are generally relied

upon in the natural gas industry or rely upon the credit

rating of the Customer's parent company. In addition, Gulf

South will consider the following factors:

 

(i) Consideration of whether Customer or any parent

entity has pending a petition in bankruptcy or the

entry of a decree or order, continuing unstayed and

in effect for a period of sixty (60) consecutive

days, by a court having jurisdiction adjudging the

following:

 

1) declaring the Customer as bankrupt or

insolvent;