Panther Interstate Pipeline Energy, L.L.C.

Original Volume No. 1

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Effective Date: 02/01/2004, Docket: CP03-338-001, Status: Effective

Original Sheet No. 27 Original Sheet No. 27 : Effective


Shipper's rating is at BBB- or Baa3 and the short-term or long-

term outlook is Negative, Transporter may require further analysis

as discussed below); and (ii) the sum of reservation fees,

commodity fees and any other associated fees and charges for the

contract term is less than 15% of Shipper's tangible net worth.

If a Shipper has multiple transportation service agreements with

Transporter, then the total potential fees and charges of all such

service agreements shall be considered in determining



If Shipper does not meet the criteria described above, then

Shipper may request that Transporter evaluate its creditworthiness

based upon the level of service requested relative to the

Shipper's current and future ability to meet its obligations.

Transporter shall apply consistent evaluation practices to all

similarly situated Shippers to determine the Shipper's financial

ability to perform the payment obligations due to Transporter over

the term of the requested or existing transportation service

agreement. Such credit appraisal shall be based upon

Transporter's evaluation of the following information and credit



(a) S&P and Moody's opinions, watch alerts, and rating actions

and reports, rating, opinions and other actions by Dun and

Bradstreet and other credit reporting agencies will be

considered in determining creditworthiness.


(b) Consistent financial statement analysis will be applied by

Transporter to determine the acceptability of Shipper's

current and future financial strength. Shipper's balance

sheets, income statements, cash flow statements and

auditor's notes will be analyzed along with key ratios and

trends regarding liquidity, asset management, debt

management, debt coverage, capital structure, operational

efficiency and profitability.


(c) Results of bank and trade reference checks and credit

reports must demonstrate that a Shipper is paying its

obligations in a timely manner.


(d) 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 and there must

not be pending any petition for involuntary bankruptcy. An