Empire Pipeline, Inc.

Original Volume No. 1

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Effective Date: 12/10/2008, Docket: CP06-5-010, Status: Effective

Original Sheet No. 117 Original Sheet No. 117

 

GENERAL TERMS AND CONDITIONS

 

 

2. QUALIFICATION FOR SERVICE (Cont'd.)

 

 

(ix) 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

Transporter's services through filings with regulatory

agencies or otherwise to pass on such costs to its

customers;

 

(x) any other information obtained that is relevant to

Shipper's current and future financial strength.

 

(xi) Consistent financial statement analysis will be

applied by Transporter 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.

 

(xii) Results of bank and trade reference checks and credit

reports must demonstrate that a Shipper is paying its

obligations in a timely manner.

 

 

(c) Transporter may, either upon the request for service or at

any future time after initiation of service, as Transporter

deems necessary, conduct ongoing credit evaluations of

Shipper. Shipper shall furnish the information in Sections

2.1 and 2.2 above, within three (3) Business Days of

Transporter's request.

 

If Transporter determines that a Shipper is non-creditworthy

based upon Transporter's credit evaluation, Transporter will

provide Shipper with written notification including the

reason(s) for its determination. Transporter shall not be

required to commence or to continue service under any rate

schedule on behalf of any Shipper who is or has become non-

creditworthy or who, at Transporter's request fails to

demonstrate creditworthiness and loses its creditworthiness