Canyon Creek Compression Company

Third Revised Volume No. 1

Effective Date: 12/01/1993, Docket: RS92- 57-003, Status: Effective

Original Sheet No. 133 Original Sheet No. 133 : Effective

GENERAL TERMS AND CONDITIONS

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14. EVALUATION OF CREDIT

In evaluating requests for service and for certain other

purposes under this Tariff, Canyon will perform a credit appraisal

of Shipper.

(a) Such a credit appraisal shall be performed in

accordance with the following criteria:

(1) Canyon may require Shipper to provide current

financial statements, annual reports, 10-K or other reports to

regulatory agencies, a list of corporate affiliates, parents or

subsidiaries, or any reports from credit reporting agencies which

are available. Canyon shall apply consistent evaluation practices

to determine the acceptability of the Shipper's overall financial

condition, working capital, and profitability trends.

(2) A bank reference and two trade references must

be provided by Shipper. The results of reference checks must show

that Shipper's obligations are being paid on a reasonably prompt

basis.

(3) 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, such as

an assignment for the benefit of creditors, or any informal

creditors' committee agreement. An exception can be made for a

Shipper who is a debtor in possession operating under Chapter XI of

the Federal Bankruptcy Act but only with adequate assurances that

billing hereunder will be paid promptly as a cost of administration

under the federal court's jurisdiction.

(4) Shipper must not be subject to the uncertainty

of pending litigation which could cause a substantial deterioration

in its financial condition, which could cause a condition of

insolvency, or which could jeopardize the ability of the Shipper to

exist as an ongoing business entity.

(5) If Shipper has an ongoing business

relationship with Canyon or any of its affiliates, no delinquent

balances may be consistently outstanding for natural gas sales,

storage or transportation services rendered previously to Shipper

and Shipper must have paid its account during the past according to

the established terms and not made deductions or withheld payment

for claims unless authorized by contract.