Questar Southern Trails Pipeline Company

Original Volume No. 1

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Effective Date: 06/15/2009, Docket: RP09-592-000, Status: Effective

First Revised Sheet No. 68 First Revised Sheet No. 68

Superseding: Original Sheet No. 68




has multiple service agreements with Southern Trails, then the total

potential fees and charges of all such service agreements shall be considered

in determining creditworthiness.


(iii) As used in the prior paragraph, the term "tangible

net worth" means the excess of assets over liabilities from an accounting

stand point, which is also known as "capital." For example, in the case of a

corporation, tangible net worth is represented by the capital stock, paid-in


capital in excess of par or stated value, and other free and clear equity

reserve accounts, if any. Southern Trails defines tangible net worth for a

corporation as the sum of the capital stock, paid-in capital in excess of par

or stated value, and other free and clear equity reserve accounts less

goodwill, patents, unamortized loan costs or restructuring costs, and other

intangible assets. Only actual tangible assets are included in Southern

Trails' assessment of creditworthiness. Tangible net worth is compared with

the net present value of a Shipper's obligations to Southern Trails under its

contracts in applying the 15% test in the prior paragraph.


(iv) If a Shipper does not meet the criteria described

above, then such Shipper may request that Southern Trails evaluate its

creditworthiness based upon the level of its current and requested service on

Southern Trails relative to the Shipper's current and future ability to meet

its obligations. Such credit appraisal shall be based upon Southern Trails'

evaluation of the following information and credit criteria:


(1) S&P and Moody's opinions, watch alerts, and

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

Bradstreet and other credit reporting agencies will be considered in

determining creditworthiness.


(2) Consistent financial statement analysis will be

applied by Southern Trails 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



(3) Results of bank and trade reference checks and

credit reports must demonstrate that Shipper is paying its obligations in a

timely manner.


(4) 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 of the Shipper. An exception may be made