Trailblazer Pipeline Company
Fourth Revised Volume No. 1
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Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective
Original Sheet No. 168 Original Sheet No. 168 : Effective
GENERAL TERMS AND CONDITIONS
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If a Shipper does not meet the criteria described
above, then such Shipper may request that Trailblazer evaluate its
creditworthiness based upon the level of its current and requested
service(s) on Trailblazer relative to the Shipper's current and future
ability to meet its obligations. Such credit appraisal shall be based
upon Trailblazer's evaluation of the following information and credit
criteria:
(1) S&P and Moody's opinions, watch alerts, and
rating actions and reports, ratings, opinions and other actions by Dun
and Bradstreet and other credit reporting agencies will be considered
in determining creditworthiness.
(2) Consistent financial statement analysis will be
applied by Trailblazer to determine the acceptability of the Shipper's
current and future financial strength. The Shipper's balance sheets,
income statements, cash flow statements and auditor's notes will be
analyzed along with key ratios and trends regarding liquidity, asset
management, debt management, debt coverage, capital structure,
operational efficiency and profitability.
(3) Results of bank and trade reference checks and
credit reports must demonstrate that the Shipper is paying its
obligations in a timely manner.
(4) The 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 and there must not be
pending any petition for involuntary bankruptcy of the Shipper. An
exception may be made for a Shipper which is a debtor in possession
operating under Chapter XI of the Federal Bankruptcy Act if
Trailblazer is assured that the service billing will be paid promptly
as a cost of administration under the federal court's jurisdiction,
based on a court order in effect, and if the Shipper is continuing and
continues in the future actually to make payment.
(5) Whether the Shipper is subject to any lawsuits
or judgments outstanding which could materially impact its ability to
remain solvent.
(6) Whether the Shipper has or has had any
delinquent balances outstanding for services provided previously by
Trailblazer and whether the Shipper is paying and has paid its account
balances according to the terms established in its service agreements
(excluding amounts as to which there is a good faith dispute).