Stingray Pipeline Company, L. L. C.

Third Revised Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-499-000, Status: Effective

First Revised Sheet No. 141 First Revised Sheet No. 141 : Effective

Superseding: Original Sheet No. 141

 

 

GENERAL TERMS AND CONDITIONS

 

 

14. EVALUATION OF CREDIT

 

In evaluating requests for service and for certain

other purposes under this Tariff, Stingray will

perform a credit appraisal of Shipper.

 

(a) Such a credit appraisal shall be performed in

accordance with the following criteria:

 

(1) Stingray may require Shipper to provide

current financial statements, annual

reports, 10-K or other reports to

regulatory agencies, a list of corporate

affiliates, parents or subsidiaries, or any

reports from credit reporting agencies

which are available. Stingray shall apply

consistent evaluation practices to

determine the acceptability of the

Shipper's overall financial condition,

working capital, and profitability trends.

 

(2) A bank reference and two trade references

must be provided by Shipper. The results

of reference checks must show that

Shipper's obligations are being paid on a

reasonably prompt basis.

 

(3) 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,

such as an assignment for 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 assurances that billing hereunder

will be paid promptly as a cost of

administration under the federal court's

jurisdiction.

 

(4) Shipper must not be subject to the

uncertainty of pending litigation which

could cause a substantial deterioration in

its financial condition, which could cause

a condition of insolvency, or which could

jeopardize the ability of the Shipper to

exist as an ongoing business entity.

 

(5) If Shipper has an ongoing business

relationship with Stingray or any of its

affiliates, no delinquent balances may be

consistently outstanding for natural gas

sales, storage or transportation services

rendered previously to Shipper and Shipper

must have paid its account during the past

according to the established terms and not

made deductions or withheld payment for

claims, absent the posting of a surety bond

pending resolution of the disputed amount,

unless authorized by contract.