Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 05/14/2010, Docket: RP10-601-000, Status: Effective

Fourth Revised Sheet No. 1201 Fourth Revised Sheet No. 1201

Superseding: Third Sub. Third 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 a credit limit on a standardized non-

discriminatory 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 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 established by the Customer

having a senior unsecured debt rating of at least BBB- by

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

Moody's. If Customer is rated by multiple agencies, Gulf

South shall use the lowest credit rating to determine

creditworthiness; provided, however, that if Customer's

rating is BBB- or Baa3 and the short-term outlook as

established by the rating agency relied upon is negative,

Gulf South may require additional analysis of that

Customer's credit status before concluding that Customer

is creditworthy. If the Customer is not rated, Gulf South

will establish creditworthiness based upon the Customer's

parent having a senior unsecured debt rating of at least

BBB- by Standards & Poor's or Fitch or a rating of at

least Baa3 by Moody's. If Customer's parent is rated by

multiple agencies, Gulf South shall use the lowest credit

rating to determine creditworthiness; provided, however,

if Customer's parent's rating is BBB- or Baa3 and the

short-term outlook as established by the rating agency

relied upon is negative, Gulf South may require additional

analysis of that Customer's credit status before

concluding that Customer is creditworthy. If the Customer

and its parent do not have their own independent credit

ratings, then Gulf South shall determine whether the

Customer is creditworthy based solely upon the factors

listed in 5.2(b)(i-x). Nothing herein shall limit Gulf