Natural Gas Pipeline Company Of America
Seventh Revised Volume No. 1
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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective
Original Sheet No. 399 Original Sheet No. 399 : Pending
GENERAL TERMS AND CONDITIONS
(1) S&P and Moody's opinions, watch alerts, and rating
actions and reports, rating, opinions and other actions by Dun and
Bradstreet and other credit reporting agencies will be considered in
(2) Consistent financial statement analysis will be
applied by Natural to determine the acceptability of Shipper's current and
future financial strength. 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 a Shipper is paying its obligations in
a timely manner.
(4) 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. An exception may be made for a
Shipper who is a debtor in possession operating under Chapter XI of the
Federal Bankruptcy Act if Natural 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 Shipper is subject to any lawsuits or
judgments outstanding which could materially impact its ability to remain
(6) Whether Shipper has or has had any delinquent
balances outstanding for services provided previously by Natural and
whether 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).
(7) The nature of the Shipper's business and the effect
on that business of general economic conditions and economic conditions
specific to it, including Shipper's ability to recover the costs of
Natural's services through filings with regulatory agencies or otherwise to
pass on such costs to its customers.
(8) Any other information, including any information
provided by Shipper, that is relevant to Shipper's current and future
financial strength and Shipper's ability to make full payment over the term
of the contract.