Pinnacle Pipeline Company

ORIGINAL VOLUME NO. 1

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Effective Date: 10/08/2003, Docket: RP04-102-001, Status: Effective

Original Sheet No. 151 Original Sheet No. 151 : Effective

 

 

(a) Prior to execution of a Transportation

Agreement, providing for service under any

Rate Schedule, a Shipper shall be required

to establish creditworthiness with

Transporter. Transporter shall not be

required to: (i) execute a Transportation

Agreement providing for service under the

applicable Rate Schedule on behalf of any

Shipper who fails to meet Transporter's

standards for creditworthiness; or (ii)

initiate service to a Shipper who fails to

meet Transporter's standards for

creditworthiness; or (iii) continue

transportation service on behalf of any

Shipper who is or has become insolvent or

who, at Transporter's request, fails within

a reasonable period to demonstrate

creditworthiness.

 

(b) For purposes herein, the determination of

Shipper's creditworthiness shall be based

upon the level of service requested by

Shipper, Shipper's estimated financial

strength as defined by Dun & Bradstreet and

a composite credit appraisal of at least

"3", also as defined by Dun & Bradstreet.

If Shipper is not rated by Dun &

Bradstreet, determination of a Shipper's

creditworthiness shall be based upon a

credit rating, as evaluated by Transporter,

based upon the level of service requested

by Shipper and financial analysis criteria

and which are generally acceptable in the

natural gas industry. If Transporter

determines that Shipper does not have an

acceptable rating set forth above, Shipper

may, at its own expense, obtain a private

rating from Dun & Bradstreet, or, as an

alternative, request that an independent

certified public accountant, mutually

acceptable to Shipper and Transporter,

prepare an equivalent evaluation based on

the financial analysis criteria and ratios

which are generally acceptable in the

natural gas industry.

 

(c) If a Shipper otherwise fails to establish

creditworthiness as provided herein,