Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 10/19/2006, Docket: RP06-596-000, Status: Effective

Third Revised Sheet No. 177 Third Revised Sheet No. 177 : Effective

Superseding: Second Revised Sheet No. 177

GENERAL TERMS AND CONDITIONS (Continued)

 

(ii) within 30 days of a demand made by Transporter, Shipper furnishes good and

sufficient surety bond in an amount and with surety satisfactory to Transporter;

 

(iii) the surety bond guarantees payment to Transporter of the amount ultimately

found due upon the bill, plus accrued interest, upon a final determination by agreement or

by judgment of the courts; and

 

(iv) Shipper does not default on the conditions of the bond.

 

If Shipper (i) has complied with all of the requirements in the immediately preceding sentence; (ii) prevails

on the merits of the dispute concerning the bill by reason of a final determination by agreement or by

judgment of the courts; and (iii) makes payment to Transporter in accordance with that final determination,

then Transporter shall reimburse Shipper for the reasonable premium cost incurred by Shipper in obtaining the

surety bond upon Transporter's receipt from Shipper of the documentation of the premium cost.

 

10.6 Adjustment of Billing Errors. If it is determined that at any time or times Shipper

has been overcharged or undercharged in any form whatsoever under this Section 10 and Shipper has actually

paid the bills containing the overcharge or undercharge, then Transporter shall refund the amount of any

overcharge or Shipper shall pay the amount of any undercharge within 30 days after final determination of

the appropriate amounts. If an error is discovered in the amount billed in any statement rendered by

Transporter, that error shall be adjusted within 30 days of Transporter's determination thereof, provided

that claim therefor shall have been made within 30 days from the date of discovery of the error but in any

event within 6 months from the date of the statement with a 3 month rebuttal period. These time limitations

shall not apply in cases of FERC required rate changes, to deliberate omissions, to misrepresentations or

mutual mistake of fact. Neither Shipper's nor Transporter's other statutory or contractual rights shall be

diminished by this provision.

 

10.7 Suspension or Termination for Nonpayment. If Shipper under any Rate Schedule becomes

delinquent by 10 days in the payment of any invoice, then Shipper shall provide adequate assurance of payment

to Transporter within 10 days of the date of Transporter's written notice of delinquency. If Shipper does

not, within that 10 day period, pay the invoice together with accrued interest, or does not provide adequate

assurance of payment in accordance with the provisions of Section 3 (Requests for Service) of the General

Terms and Conditions, Transporter, in addition to any other remedies it may have, may commence suspension of

service procedures by: (a) sending a first written notice to Shipper and the Commission informing Shipper

that its service will be suspended and its Service Agreement with Transporter will be terminated in 30 days

("suspension date") if payment is not received; and (b) sending a second written notice to Shipper and the

Commission 10 days before the suspension date informing Shipper that its service will be suspended and its

Service Agreement with Transporter will be terminated on the suspension date if payment is not received before

that date. Shipper's service will be suspended and its Service Agreement terminated if full payment is not

received by Transporter before the suspension date. Termination of the Service Agreement shall not excuse

payments of the amounts then due or any other existing obligation of Shipper. Transporter shall not be

entitled to suspend service or terminate Shipper's Service Agreement pending resolution of an invoice disputed

in good faith by Shipper if Shipper complies with the provisions of paragraph 10.5(d) above.

 

10.8 Billing Disputes. If Shipper in good faith disputes an invoice from Transporter and

complies with the provisions of Section 10.5(d) above, further resolution of the dispute shall be in

accordance with the provisions of Section 30 (Complaint Resolution Procedure) of the General Terms and

Conditions.

 

10.9 Refunds. Transporter shall pay any refunds owed in excess of $50,000 to any Shipper by

wire or other electronic fund transfer of Federal Funds immediately available to Shipper at such bank account

as Shipper shall designate.

 

10.10 Right to Set Off Unpaid Amounts. If the Shipper does not pay the full amount due

Transporter in accordance with Section 10.5 hereof, then Transporter, without prejudice to any other rights or

remedies it may have, shall have the right to withhold and set off payment of any amounts of monies due or

owing by Transporter to Shipper, against any and all amounts or monies due or owing by Shipper to Transporter

for services performed by Transporter for Shipper. In addition, if Shipper has an overtender(s) of gas on any

Service Agreement(s), Transporter will have the right to net that overtender of gas against any existing

undertender(s) of gas on any of Shipper's Service Agreement(s).