Cimarron River Pipeline, LLC

Original Volume No. 1

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Effective Date: 09/01/2008, Docket: CP08-17-001, Status: Effective

Original Sheet No. 168 Original Sheet No. 168

 

GENERAL TERMS AND CONDITIONS

 

5.9 To permit Transporter to conduct a creditworthiness review, a

Shipper shall, upon request by Transporter, render to Transporter: (i) a

completed credit application and (ii) complete financial statements prepared

using generally accepted accounting principles. Upon requesting

transportation service, a Shipper must submit to Transporter a completed

credit application unless it has previously submitted one to Transporter

within the last 12 months. If a Shipper elects to provide an irrevocable

standby letter of credit or pre-payment, Transporter will waive the

completed credit application and financial statement requirement.

 

5.10 Transporter shall have the right to review a Shipper's

creditworthiness on an ongoing basis, and Shipper shall provide, upon

Transporter's request, updated financial statements periodically to allow

Transporter to determine the continuing creditworthiness of Shipper.

Shipper shall have at least three Business Days to respond to Transporter's

request for financial statements or other creditworthiness information.

 

5.11 Upon review of the Shipper's financial statements, Transporter

shall determine whether the Shipper is creditworthy. If the Shipper is

determined to be not creditworthy, Transporter may require Security as stated

herein. Shipper shall have at least five Business Days from Transporter's

written request to pay Transporter for one month of service in advance.

Shipper shall have at least 30 Days to provide the next three months of

Security to continue service. If the Shipper fails to provide the required

Security within these periods, Transporter may suspend service immediately.

In addition, Transporter will provide at least 30 Days written notice to

Shipper and to the Commission that it will terminate service if the Shipper

fails to provide the required Security.

 

5.12 Shipper shall have the right to request that its credit status be

reevaluated by Transporter at any time. If the Security requirements are

terminated and the Shipper previously had provided Transporter a pre-

payment, the Shipper may elect to receive its pre-payment, plus interest at

the FERC interest rate, in the form of either a refund or an invoice credit.

 

5.13 Transporter may determine that a Shipper is no longer

creditworthy if, in the reasonable opinion of Transporter, a Shipper (or its

guarantor) suffers a material adverse change (e.g., default on indebtedness,

restatement of financials, non-payment) in its financial condition such that

Shipper's ability to perform its obligations to Transporter is materially

impaired. If Shipper is no longer creditworthy, Transporter may require

financial statements and, when applicable, Security as stated herein.

Shipper shall have the right to demonstrate that the material adverse change

has been remedied and request that Transporter reevaluate the Shipper's

creditworthiness to determine whether the Security requirements can be

terminated.