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. 41 Original Sheet No. 41

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

7.3.3. Shipper provides a guarantee of financial performance in a form satisfac-

tory to Transporter and for the term of the Transportation Agreement from

a corporate affiliate of the Shipper or a third party, either of which

meets the creditworthiness standards set forth in this section; or

 

7.3.4. Shipper provides some other security or assurance of creditworthiness,

which in Transporter’s judgment is adequate for the service. Transporter

shall apply this provision in a manner that is not unduly discriminatory.

 

7.4. Other Creditworthiness Requirements – Shipper must also meet the following

criteria in order to be deemed creditworthy for purposes of this section:

 

7.4.1. 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 the creditors, or

any informal creditors’ committee assignment. An exception can be made

for a Shipper who is debtor in possession operating under Chapter XI of

the Federal Bankruptcy Act but only with adequate assurances that the bills

will be paid promptly as a cost of administration under the federal court’s

jurisdiction;

 

7.4.2. Shipper must not be subject to pending liquidation or regulatory proceed-

ings in state or federal courts that could cause a substantial deteriora-

tion in its financial condition or that could cause a condition of insolv-

ency or adversely affect its ability to exist as an on-going business

entity; and

 

7.4.3. Shipper must have no significant outstanding collection lawsuits or judg-

ments that would jeopardize Shipper’s ability to remain solvent.

 

7.5. Maintenance of Creditworthiness/Suspension of Service – If Shipper’s credit

standing ceases to meet Transporter’s credit requirements during the period of

service, then Transporter has the right to require security as specified herein.