Questar Southern Trails Pipeline Company
Original Volume No. 1
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Effective Date: 06/15/2009, Docket: RP09-592-000, Status: Effective
First Revised Sheet No. 67 First Revised Sheet No. 67
Superseding: Original Sheet No. 67
GENERAL TERMS AND CONDITIONS
of the accepted bid, Southern Trails shall contract with the existing Shipper.
If the existing Shipper does not elect to match the terms of the replacement
Shipper's bid, Southern Trails will contract with the replacement Shipper
according to the terms and conditions of the tariff.
(c) If no bids are received and the existing Shipper is willing
to pay the maximum rate, the existing Shipper will be entitled to continue to
receive service for whatever term it chooses. At the end of the term, the
existing Shipper may again exercise its right of first refusal to retain the
(d) An existing firm Shipper that chooses to exercise its right
of first refusal under an expiring contract will retain its right to use the
primary receipt and delivery points under that contract.
(e) Any Shipper that acquires available capacity according to
this section will not be required to repeat the bidding procedures outlined in
§ 6 of this tariff.
9.1 In evaluating requests for service and for other purposes under
this Tariff, Southern Trails will perform a credit appraisal of Shipper.
(a) Acceptance of a Shipper's request for service and the
continuation of service to a Shipper are contingent upon the Shipper
complying with creditworthiness requirements of this § 9 on an on-going
basis. To determine creditworthiness, a credit appraisal shall be performed
in accordance with the following criteria:
(i) Southern Trails shall apply consistent evaluation
practices to all similarly situated Shippers in determining any Shipper's
financial ability to perform its obligations to Southern Trails over the term
of the requested or existing Service Agreement.
(ii) A Shipper will be deemed creditworthy if:
(1) its long-term unsecured debt securities are
rated at least BBB- by Standard & Poor's Corporation (S&P) and at least Baa3
by Moody's Investor Service (Moody's) (provided, however, that if the
Shipper's rating is at BBB- or Baa3 and the short-term or long-term outlook
is Negative, Southern Trails may require further analysis as discussed
(2) the sum of reservation fees, usage fees and any
other associated fees and charges for the contract term, on a net present
value basis, is less than 15% of Shipper's tangible net worth. If a Shipper