Empire Pipeline, Inc.

Original Volume No. 1

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Effective Date: 08/01/2009, Docket: RP09-801-000, Status: Effective

First Revised Sheet No. 115 First Revised Sheet No. 115

Superseding: Original Sheet No. 115

 

GENERAL TERMS AND CONDITIONS

 

 

2. QUALIFICATION FOR SERVICE (Cont'd.)

 

 

Transporter shall apply consistent evaluation practices to

all similarly situated Shippers to determine the Shipper's

financial ability to satisfy the payment obligations due to

Transporter over the term of the requested service

agreement.

 

Transporter's credit evaluation procedures will result in

the establishment of a credit limit on a standardized

nondiscriminatory basis for each Shipper. The total amount

owed Transporter by Shipper for transportation, including

without limitation the value of imbalance gas shall not

exceed the credit limit established for such Shipper.

 

A Shipper will be deemed creditworthy if (i) its lowest

designated rating from three major credit reporting agencies

remains at least two (2) levels above non-investment grade

(i.e. Senior Unsecured credit rating is no lower than Baa2

as determined by Moody's Investor Service, Inc. ("Moody's"),

Senior Unsecured credit rating is no lower than "BBB" as

determined by Fitch, Inc.("Fitch"),Long Term Local Issuer

credit rating is no lower than BBB as determined by Standard

& Poor's Corporation ("S&P"), and (ii) its long term Outlook

opinion is no worse than "Stable" (from Moody's, Fitch or

S&P) and (iii) the sum of three months of reservation

charges, commodity charges and any other associated charges

is less than seven percent (7%) of Shipper's tangible net

worth; provided, however, that where the service request by

Shipper would require the construction of facilities by

Transporter, the sum of reservation charges, commodity

charges and other associated charges for a term determined

by Transporter on a non-discriminatory basis must be less

than seven percent (7%) of Shipper's tangible net worth. As

used herein, tangible net worth shall be the sum of the

capital stock, paid-in capital in excess of par or stated

value, and other free and clear equity reserve accounts less

goodwill, patents, unamortized loan costs or restructuring

costs and other intangible assets. If the Shipper has

multiple service agreements with Transporter, then its

obligations under all such service agreements shall be

considered in determining creditworthiness.