B-R Pipeline Company
Original Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective
Original Sheet No. 48 Original Sheet No. 48 : Effective
GENERAL TERMS AND CONDITIONS
(Continued)
11. SERVICE AGREEMENT AND CREDITWORTHINESS
11.1 Form of Agreement. Transporter and Shipper shall execute a Service
Agreement covering the service contemplated. The executed Service
Agreement, together with the General Terms and Conditions and applicable
Rate Schedule shall constitute the entire agreement between the parties for
service provided therein and shall be modified only in writing.
11.2 Creditworthiness. A Shipper seeking service from Transporter under
Rate Schedule FT or IT must provide the following:
(a) A copy of Shipper's most recent audited financial statement and
unaudited quarterly statements certified by the Chief Financial
Officer of the Shipper. Certificate shall state that such unaudited
financial statements fairly represent the financial condition and the
results of the operations of the Shipper for the period indicated and
are prepared in accordance with generally accepted accounting
principles;
(b) Such other documentation as the Transporter shall reasonably request
in connection with the service contemplated;
(c) A list of Shipper's affiliates, including parent and subsidiaries,
if applicable.
In the event Shipper cannot provide the information above, Shipper shall,
if applicable, provide that information for its parent company.
(d) As security for the payment of amounts due, Shipper agrees to
provide the following:
(i) In the event Shipper maintains a long-term, senior, unsecured
debt rating, not supported by third party credit enhancement, of
at least "BBB" by Standard & Poor's or "Baa2" by Moody's, without
negative implications, no additional security is required.
(ii) In the event Shipper maintains a long-term, senior, unsecured
debt rating, not supported by third party credit enhancement,
less than "BBB" by Standard & Poor's or "Baa2" by Moody's, has
negative implications, or does not maintain a credit rating,
Shipper shall provide:
(1) one or more irrevocable, transferable, standby letters of
credit from a major U.S. commercial bank or a foreign bank with a
U.S. branch office. Such bank shall have a credit rating of at
least "A+" from Standard & Poor's or "A1" from Moody's and $10
Billion in assets. The letter of credit shall be in favor of and
in a form acceptable to Transporter; or
(2) a guaranty in favor of and in a form acceptable to
Transporter from an entity acceptable to Transporter; or
(3) cash prepayment in an amount equal to the cost of the service
provided.