Riverside Pipeline Company, L. P.

First Revised Volume No. 1

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Effective Date: 10/01/1993, Docket: RS92- 48-001, Status: Effective

Original Sheet No. 82 Original Sheet No. 82 : Effective

 

 

GENERAL TERMS AND CONDITIONS

 

 

11. REQUESTS FOR TRANSPORTATION SERVICE (cont'd)

 

11.4 Creditworthiness: Acceptance of a request for service and the

continuation of service is contingent upon the Shipper satisfying,

on an on-going basis, a credit appraisal by Riverside. Riverside

shall apply consistent evaluation practices to determine the

acceptability of Shipper's overall financial condition. Such

credit appraisal shall be based upon the following information and

criteria:

 

(a) Shipper shall provide current financial statements, annual

reports, 10-K reports or other filings with regulatory

agencies which discuss the Shipper's financial status, a

list of all corporate affiliates, parent companies and

subsidiaries, and any reports from credit reporting and

bond rating agencies which are available. Riverside shall

determine the acceptability of Shipper's overall financial

condition, working capital, and profitability trends.

 

(b) Shipper shall provide a bank reference and at least two

trade references. The results of reference checks and any

credit reports submitted under Section 11.4(a) must show

that Shipper's obligations are being paid on a reasonably

prompt basis.

 

(c) Shipper shall confirm in writing that it is not operating

under any chapter of the bankruptcy laws and is not subject

to litigation or debt reduction procedures under state laws,

such as an assignment or the benefit of creditors, or any

informal creditors' committee agreement. An exception can

be made for a Shipper who is a debtor in possession

operating under Chapter XI of the Federal Bankruptcy Act but

only with adequate assurance that the service billing shall

be paid promptly as a cost of administration under the

Federal Court's jurisdiction.