Dominion Cove Point LNG, LP

Original Volume No. 1

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Effective Date: 05/01/2003, Docket: RP03-341-000, Status: Effective

Original Sheet No. 264 Original Sheet No. 264 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

18. BILLING AND PAYMENT (Continued)

 

 

(b) (4) If Buyer in good faith disputes the amount of any such bill or part thereof,

Operator shall not be entitled to suspend further delivery of Natural Gas if (i)

Buyer pays to Operator such amounts it concedes to be correct and provides

written documentation as to the basis for the dispute; (ii) within thirty (30)

days of a demand made by Operator, Buyer furnishes good and sufficient surety

bond in the amount and with surety satisfactory to Operator; (iii) such surety

bond guarantees payment to Operator in the amount ultimately found due upon such

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

judgment of the courts; and (iv) Buyer does not default on the conditions of such

bond.

 

 

(c) Adjustment of Billing Errors. If it shall be determined that Buyer has been

overcharged or undercharged in any form whatsoever and Buyer has actually paid the

bills containing such overcharge or undercharge, Operator shall refund the amount of

any such overcharge or Buyer shall pay the amount of any such undercharge within

thirty (30) days after final determination of such amounts. In the event an error is

discovered in the amount billed in any statement rendered by Operator, such error

shall be adjusted within thirty (30) days of Operator's determination of such error,

provided that the claim therefore shall have been made within thirty (30) days after

the date of discovery of such error, but in no event later than six (6) months after

the date of such statement and 7 months from the date of the initial sales invoice

with a three (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 Buyer's nor Operator's other statutory or contractual

rights shall be affected by this provision.

 

 

(d) Suspension or Termination for Nonpayment. If Buyer under any Rate Schedule becomes

delinquent by ten (10) days in the payment of any invoice, then such Buyer shall

provide adequate assurance of payment to Operator within ten (10) days of the date of

Operator's written notice of such delinquency. If Buyer does not, within such ten

(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 6(d)

(Operating Conditions) of the General Terms and Conditions, Operator may immediately

suspend service to Buyer upon notice to Buyer. If the invoice is not paid in full

within thirty (30) days after its due date and Buyer has not provided adequate

assurance of payment, Operator, in addition to any other remedies it may have, may

terminate the Service Agreement, effective after ten (10) days notice to Buyer. Such

termination, however, will not be effectuated if Buyer pays all amounts due Operator

and, if required by Operator, provides adequate assurance of payment for future

service within such 10-day period. Termination of the Service Agreement shall not

excuse payments of the amounts then due or any other existing obligation of Buyer

including obligations to make future payments. Operator shall not be entitled to

suspend service or terminate Buyer's Service Agreement pending resolution of an

invoice disputed in good faith by Buyer if Buyer complies with the provisions of

Section 18(b)(4) above.