Canyon Creek Compression Company

Third Revised Volume No. 1

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Effective Date: 05/01/1997, Docket: RP97- 66-006, Status: Effective

First Revised Sheet No. 164 First Revised Sheet No. 164 : Effective

Superseding: Original Sheet No. 164

GENERAL TERMS AND CONDITIONS

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16.15 QUALIFICATION FOR PARTICIPATION IN THE CAPACITY RELEASE

PROGRAM

 

(a) Any person wishing to become a Qualified Bidder and

make a Qualified Bid must satisfy the creditworthiness requirements

in Section 14 of these General Terms and Conditions prior to

submitting a Qualified Bid under this Section 16. A person cannot

bid for services which exceed its qualified level of credit-

worthiness. Canyon shall process--and encourages--applications from

potential Qualified Bidders seeking prequalification for bids they

may make in the future.

 

(b) Credit applications shall be completed in full with

all information required to establish creditworthiness under the

credit criteria included in Section 14 of these General Terms and

Conditions. Should a potential bidder fail to satisfy such credit

criteria, the potential bidder may still become a Qualified Bidder

by providing a prepayment, letter of credit, security interest or

guarantee satisfactory to Canyon as further set forth in Section 14

of these General Terms and Conditions.

 

(c) Based on Canyon's continuing review of a Shipper's

financial records, Canyon shall have the right to amend a Shipper's

line of credit and lower or increase the quantity and term.

 

(d) Canyon's determination of a Shipper's

creditworthiness is solely for Canyon's purposes under Canyon's

Tariff and such determination is neither a representation nor a

guarantee to a Releasing Shipper or any other entity as to the

ability of a Replacement or Subreplacement Shipper to pay any

outstanding amount under a Released Firm Compression Agreement.

 

16.16 COMPLIANCE BY SHIPPER

 

By acquiring released capacity, a Shipper agrees that it

will comply with all provisions of Canyon's Tariff and all

applicable Commission orders, rules and regulations. Such Shipper

also agrees to be responsible to Canyon for compliance with all

applicable terms and conditions of Canyon's Tariff, as well as the

terms and conditions of the Released Firm Compression Agreement.