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

capacity.

 

(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. CREDITWORTHINESS

 

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

below); and

 

(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