Crossroads Pipeline Company
First Revised Volume No. 1
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Effective Date: 11/01/2001, Docket: RP02- 14-000, Status: Effective
Original Sheet No. 55 Original Sheet No. 55 : Superseded
GENERAL TERMS AND CONDITIONS
3.7 Denial of Requests. Transporter may reject any request for service from a Requestor that fails to
meet Transporter's creditworthiness requirements unless Requestor provides assurance of payment as provided
in Section 3.8 below. Where service is requested under Rate Schedule PALS, Transporter may consider the
quantities which Requestor could owe Transporter in determining the level of service for which Requestor is
creditworthy. Grounds for rejection shall include, but shall not be limited to, Requestor's failure (a) to
show that Requestor's obligations are being paid in a timely manner, or (b) to provide reasonable assurance
that Requestor will be able to continue to pay its obligations in the future.
3.8 Assurance of Payment. If Transporter denies a request for service or does not approve the placement
of Requestor's name on the Approved Bidder List due to a failure to satisfy Transporter's creditworthiness
requirements, Requestor may obtain service or be placed on the Approved Bidder List if it provides
Transporter with assurance of payment in the manner set forth at Section 3.9 below and otherwise complies
with the ongoing creditworthiness requirements set forth in Section 3.9. If Requestor fails to tender such
assurance of payment within 10 days, or such longer time period reasonably established by Transporter,
Transporter may deny Requestor's request for service or reject any bid submitted by Requestor.
3.9 Creditworthiness of Shipper.
(a) Subject to the provisions of paragraphs (b) and (c) immediately below, Transporter shall not
be required to perform or to continue to perform service on behalf of any Shipper that (i) is or has become
insolvent, (ii) has applied for bankruptcy under Chapter 11 of the Bankruptcy Code or is subject to similar
proceedings under State or Federal Law, or (iii) fails, in Transporter's reasonable judgment, to demonstrate
minimal creditworthiness for all or any part of the service requested, based upon Transporter's
consideration of available credit data concerning Shipper and Shipper's past payment history, financial
statements, and credit reports.
(b) Transporter may require adequate assurance of payment for any service under this Tariff
requested by an insolvent or uncreditworthy Shipper. Such a Shipper may receive or continue to receive
service if it provides adequate assurance of payment for service within 15 days after the date of written
demand by Transporter. Adequate assurance of payment may include: