Canyon Creek Compression Company
First Revised Volume No. 1A
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Effective Date: 05/01/1991, Docket: RP91-123-000, Status: Effective
Original Sheet No. 16 Original Sheet No. 16 : Superseded
RATE SCHEDULE FCS
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5.7 CREDIT INFORMATION
(a) Acceptance of a request is contingent upon a
satisfactory credit appraisal by Canyon.
Such a credit appraisal shall be performed in
accordance with the following criteria:
(1) Customer shall provide current financial
statements, annual reports, 10-K reports or other filings with
regulatory agencies, a list of all corporate Affiliates, parent
companies and subsidiaries, and any reports from credit reporting
agencies which are available. Canyon shall apply consistent
evaluation practices to determine the acceptability of the
Customer's overall financial condition, working capital, and
profitability trends.
(2) A bank reference and at least two (2) trade
references must be provided by Customer. The results of reference
checks and any credit reports submitted in subsection 5.7(a)(1)
hereof must show that Customer's obligations are being paid on a
reasonably prompt basis.
(3) Customer 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
Customer who is a debtor in possession operating under Chapter XI of
the Federal Bankruptcy Act but only with adequate assurances that
the transportation billing will be paid promptly as cost of
administration under the federal court's jurisdiction.
(4) Customer should not be subject to the
uncertainty of pending liquidation or regulatory proceedings in
state or federal courts which could cause a substantial
deterioration in its financial condition, which could cause a
condition of insolvency, or impair the ability to exist as an
ongoing business entity.
(5) If Customer has an ongoing business
relationship with Canyon, no delinquent balances should be
consistently outstanding for natural gas sales or transportation
services made previously by Canyon and Customer may have paid its