Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

Effective Date: 05/01/2003, Docket: RP03-352-000, Status: Effective

Original Sheet No. 279 Original Sheet No. 279 : Effective

GENERAL TERMS AND CONDITIONS

18. BILLING AND PAYMENTS (Cont'd)

If failure to pay continues for thirty days after payment is due and

Southern Star has provided Shipper(s) and the FERC, with at least 30

days notice, Southern Star, in addition to any other remedy it may have

under the service agreement, may suspend service under all service

agreements with any Shipper who is liable for such payment until

satisfactory credit arrangements have been made. Further, after such

failure to pay and application to and authorization by the Federal

Energy Regulatory Commission, if that authorization is necessary,

Southern Star may terminate the service agreements and cease all service

thereunder. However, if Shipper in good faith shall dispute the amount

of any such bill or part thereof and shall pay to Southern Star such

amounts as it concedes to be correct and at any time within thirty days

after a demand made by Southern Star shall furnish good and sufficient

surety bond or other mutually acceptable security, guaranteeing payment

to Southern Star of the amount ultimately found due upon such bills

after a final determination which may be reached either by agreement or

judgment by the courts, as may be the case, Southern Star shall not be

entitled to terminate the service agreement or cease service thereunder

until default be made in the conditions of such bond.

Under capacity assignment arrangements, if the Replacement Shipper fails

to pay within sixty days, the Releasing Shipper will be liable, and will

be billed for full payment of the reservation charge and reservation

surcharges. If the Releasing Shipper fails to pay the reservation

charges which it remains responsible for, service may be suspended or

terminated, pursuant to the provisions of the previous paragraph to both

that Releasing Shipper and to its Replacement Shipper who is shipping

under assignment of the agreement for which the reservation charges are

due.

Prior period adjustment time limits must be six (6) months from the date

of the initial transportation invoice and seven (7) months from the date

of the initial sales invoice, with a three (3) month rebuttal period,

excluding government-required rate changes. This standard shall not

apply in the case of deliberate omission or misrepresentation or mutual

mistake of fact. Parties' other statutory or contractual rights shall

not otherwise be diminished by this standard.