Dauphin Island Gathering Partners

First Revised Volume No. 1

Effective Date: 03/16/1999, Docket: CP98- 6-003, Status: Effective

Original Sheet No. 226 Original Sheet No. 226 : Effective

19.7 Billing and Payment:

(a) An Acquiring Shipper receiving capacity released from a FT-1 (MP) or FT-1

(DI) Transportation Service Agreement shall be billed by Transporter and shall

make payments to Transporter in accordance with the terms of its executed FT-1

(MP) or FT-1 (DI) Transportation Service Agreement or a Temporary Release

Agreement. On the Releasing Shipper's bill for a month in which it released

capacity hereunder on a temporary basis, Transporter shall bill the Releasing

Shipper the charges pursuant to the Releasing Shipper's FT-1 (MP) or FT-1 (DI)

Transportation Service Agreement with the MDQ equal to the MDQ of the

Releasing Shipper prior to the release and shall credit all the reservation charge

billed by Transporter to the Acquiring Shipper for the released capacity;

provided, however, that in the event the Acquiring Shipper fails to pay

Transporter for any part of the amount credited to the Releasing Shipper's bill,

Transporter reserves the right to reverse the credit on the Releasing Shipper's

bill in a later month up to the unpaid amount plus interest thereon calculated

pursuant to Section 14.3. If the Acquiring Shipper fails to pay its reservation

charges pursuant to the provisions of Section 14, the Releasing Shipper shall

have the right to recall its capacity by notifying the Acquiring Shipper and

Transporter of such recall pursuant to the provisions of Section 19.4. All

reservation charge credits to the Releasing Shipper's bill pursuant to this

Subsection shall be final and nonreversible upon Transporter's receipt of full

payment therefor from the Acquiring Shipper.

(b) An Acquiring Shipper receiving capacity released from a FT-2 (MP) or FT-3

(MP) Transportation Service Agreement for use under Rate Schedule FT-2 (MP)

or FT-3 (MP), or from a FT-2 (DI) Transportation Service Agreement for use

under Rate Schedule FT-2 (DI), shall be billed by Transporter and shall make

payments to Transporter in accordance with the terms of its executed FT-2

(MP), FT-2 (DI) or FT-3 (MP) Transportation Service Agreement or a

Temporary Release Agreement. On the Releasing Shipper's bill for a month in

which it released capacity hereunder on a temporary basis, Transporter shall bill

the Releasing Shipper subject to the terms of the Releasing Shipper's FT-2

(MP), FT-2 (DI) or FT-3 (MP) Transportation Service Agreement with the

MDQ equal to the MDQ of