Garden Banks Gas Pipeline, LLC

Original Volume No. 1

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Effective Date: 05/10/2010, Docket: RP10-594-000, Status: Effective

First Revised Sheet No. 313 First Revised Sheet No. 313

Superseding: Original Sheet No. 313

 

FORM OF NGL BANK AGREEMENT

 

ARTICLE V

SETTLEMENTS

Cont'd

 

5.6 Default; Remedies. For purposes of this Agreement, the term "Default"

means: (a) Shipper shall: (i) make an assignment or any general arrangement

for the benefit of creditors; (ii) file a petition or otherwise commence,

authorize, or acquiesce in the commencement of a proceeding or cause under any

bankruptcy or similar law for the protection of creditors or have such a

petition filed or proceeding commenced against it; (iii) otherwise become

bankrupt or insolvent; or (iv) be unable to pay its debts as they fall due;

(b) the failure by Shipper to make, when due, any payment required under this

Agreement if such failure is not remedied within ten (10) days after written

notice of such failure is given by Administrator, provided the payment is not

the subject of a good faith dispute; or (c) the failure by Shipper to perform

any covenant set forth in this Agreement (other than an obligation to make

payment), and such failure is not remedied within ten (10) days after written

notice thereof by Administrator. Upon the occurrence of a Default,

Administrator will have the right to exercise all rights and remedies

available to it under this Agreement, at law, and in equity, including the

rights: (a) to file suit to seek damages or equitable remedies; and (b) to

suspend performance hereunder (including, without limitation, the withholding

of any payments due hereunder) until the relevant Default has been remedied.

 

 

ARTICLE VI

AUDITS

 

6.1 Shipper, upon sixty (60) days prior written notice to the Administrator

and all other shippers, shall have the right, at reasonable times, to inspect

and audit the accounts, records, documents and data of the Administrator

pertaining to the NGL Bank, provided, however, that any such audit shall be

performed within twenty-four (24) months following the end of the calendar

year for which any such accounts, records, documents and data are in question.

The cost of conducting the audit (including Administrator's costs) and

resolving the exceptions and adjustments thereto shall be borne solely by the

shipper(s) auditing the system records.

 

6.2 Should the audit result in a claim by a shipper, then a written response

shall be made by the Administrator as soon as practical, but in no event later

than one hundred and twenty (120) days from the date the Administrator's of

receipt of such claim. Any NGL Bank settlement adjustments determined to be

due any shipper shall be made within sixty (60) days of determination thereof.