Kansas Pipeline Company

Original Volume No. 1

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Effective Date: 05/11/1998, Docket: CP96-152-015, Status: Effective

First Revised Sheet No. 212 First Revised Sheet No. 212 : Effective

Superseding: Original Sheet No. 212

GENERAL TERMS AND CONDITIONS (Continued)

 

rights through the IEC System or in writing in the

form specified by Kansas Pipeline's current service

rights request form, as such may be revised from time

to time. Written requests must be submitted to the

following address:

 

Kansas Pipeline

Attn: Transportation Services

8325 Lenexa Drive, Suite 400

Lenexa, KS 66214

 

Telephone: (913) 888-7139

Facsimile: (913) 888-9254

 

6.2 Acceptance of a request for service rights and the

continuation of service is contingent upon the Shipper

satisfying, on an on going basis, a credit appraisal by

Kansas Pipeline. Kansas Pipeline shall apply consistent

evaluation practices to determine the acceptability of

Shipper's overall financial condition. Such credit

appraisal shall be based upon the following information

and criteria:

 

(a) Shipper shall provide current financial statements,

annual reports, 10-K reports or other filings with

regulatory agencies which discuss the Shipper's

financial status, a list of all corporate affiliates,

parent companies and subsidiaries, and any reports

from credit reporting and bond rating agencies

which are available. Kansas Pipeline shall determine

the acceptability of Shipper's overall financial

condition, working capital, and profitability trends.

 

(b) Shipper shall provide a bank reference and at least

two trade references. The results of reference

checks and any credit reports submitted in 6.2(a)

must show that Shipper's obligations are being paid on

a reasonably prompt basis.

 

(c) Shipper shall confirm in writing that it is not

operating under any chapter of the bankruptcy laws

and is not subject to litigation 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