Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 399 Original Sheet No. 399 : Pending






(1) 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.


(2) Consistent financial statement analysis will be

applied by Natural 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.


(3) Results of bank and trade reference checks and

credit reports must demonstrate that a 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. An exception may be made for a

Shipper who is a debtor in possession operating under Chapter XI of the

Federal Bankruptcy Act if Natural is assured that the service billing will

be paid promptly as a cost of administration under the federal court's

jurisdiction, based on a court order in effect, and if the Shipper is

continuing and continues in the future actually to make payment.


(5) Whether Shipper is subject to any lawsuits or

judgments outstanding which could materially impact its ability to remain



(6) Whether Shipper has or has had any delinquent

balances outstanding for services provided previously by Natural and

whether Shipper is paying and has paid its account balances according to

the terms established in its service agreements (excluding amounts as to

which there is a good faith dispute).


(7) The nature of the Shipper's business and the effect

on that business of general economic conditions and economic conditions

specific to it, including Shipper's ability to recover the costs of

Natural's services through filings with regulatory agencies or otherwise to

pass on such costs to its customers.


(8) Any other information, including any information

provided by Shipper, that is relevant to Shipper's current and future

financial strength and Shipper's ability to make full payment over the term

of the contract.