T.W. Phillips Pipeline Corp.

Original Volume No. 1

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Effective Date: 01/01/2010, Docket: RP10-141-000, Status: Effective

Original Sheet No. 40 Original Sheet No. 40

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

7.2.4. A bank reference and two trade references. The results of the reference

checks must show that Shipper’s obligations are being paid on a reason-

ably prompt basis;

 

7.2.5. Any credit reports from credit reporting agencies, which are available;

and/or,

 

7.2.6. Such other information or guarantees as may be mutually agreed to by the

parties.

 

7.3. Credit Evaluation – For purposes herein, a shipper shall be deemed creditworthy

if:

 

7.3.1. Shipper’s senior unsecured debt is rated at least BBB by Standard & Poor’s,

Baa2 by Moody’s, or an equivalent rating as determined by Transporter based

on financial information; or

 

7.3.2. The Shipper prepays for service, or provides an irrevocable letter of

credit to secure payment of an amount equal to:

 

a) For Shippers under Rate Schedule FT – the sum of the reservation

charge times, Shipper’s MDQ applicable to the proposed service

for three (3) month period; or

 

b) For Shippers taking service under a Negotiated Rate that does not

include a reservation charge, or for Shippers under Rate Schedule

IT – an amount equal to the commodity charges applicable to the

proposed service for a three (3) month period; and

 

c) Shipper shall provide the security specified in Sections 7.3.2(a)

and 7.3.2(b), as applicable, for the period there stated and shall

continue to provide security for as long thereafter as Shipper

fails to otherwise satisfy Transporter’s creditworthiness stan-

dards; or