Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-413-000, Status: Effective

First Revised Sheet No. 157 First Revised Sheet No. 157 : Effective

Superseding: Original Sheet No. 157







13.1 In evaluating requests for service and for certain other

purposes under this Tariff, including Section 3.8 of these General

Terms and Conditions, Horizon will perform a credit appraisal of



(a) Such a credit appraisal shall be performed in

accordance with the following criteria:


(1) Horizon may require Shipper to provide current

financial statements, annual reports, 10-K or other reports to

regulatory agencies, a list of corporate affiliates, parents or

subsidiaries, or any reports from credit reporting agencies which are

available. Horizon shall apply consistent evaluation practices to

determine the acceptability of the Shipper's overall financial

condition, working capital, and profitability trends.


(2) A bank reference and two trade references must

be provided by Shipper. The results of reference checks must show

that Shipper's obligations are being paid on a reasonably prompt



(3) Shipper must not be operating under any chapter

of the bankruptcy laws and must not be subject to liquidation 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 made for a Shipper who is a debtor in possession

operating under Chapter XI of the Federal Bankruptcy Act but only

with adequate assurances that billing hereunder will be paid promptly

as a cost of administration under the federal court's jurisdiction.


(4) Shipper must not be subject to the uncertainty

of pending litigation which could cause a substantial deterioration

in its financial condition, which could cause a condition of

insolvency, or which could jeopardize the ability of the Shipper to

exist as an ongoing business entity.


(5) If Shipper has an ongoing business relationship

with Horizon or any of its affiliates, no delinquent balances may be

consistently outstanding for natural gas sales or transportation

services rendered previously to Shipper and Shipper must have paid

its account during the past according to the established terms and

not made deductions or withheld payment for claims unless authorized

by contract.