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,