Dauphin Island Gathering Partners

Original Volume No. 1

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Effective Date: 12/23/1997, Docket: CP97-300-002, Status: Effective

Original Sheet No. 206 Original Sheet No. 206 : Effective

under its Temporary Release Agreement; 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 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.

(d) The Acquiring Shipper shall be obligated to pay

Transporter the Reservation and Commodity Rates,

plus all associated volumetric surcharges,

applicable to the volumes Transporter transports

under the Acquiring Shipper's FT-1 (MP), FT-1 (DI),

FT-2 (MP), FT-2 (DI) or FT-3 (MP) Transportation

Service Agreement or Temporary Release Agreement.

Transporter will retain the transportation charges

and associated volumetric surcharges it received

from the Acquiring Shipper. If any of the charged

billed to and paid by the Acquiring Shipper under

its FT-1 (MP), FT-1 (DI), FT-2 (MP), FT-2 (DI) or

FT-3 (MP) Transportation Service Agreement or

Temporary Release Agreement exceed the rate which

the Commission determines to be just and reasonable

and Transporter is ordered to make refunds, the

Acquiring Shipper shall be eligible to receive

refunds to the extent of any payments it made in

excess of the rates the Commission subsequently

determined to be just and reasonable.

(e) Transporter and Releasing Shipper may, in connection

with a Negotiated Rate based on a rate design other

than straight fixed variable, agree upon a payment

obligation and crediting mechanism that varies from

or is in addition to the provision of this Section

19.7 in order to establish the basis of accounting

for revenues from an Acquiring Shipper as a means of

preserving the economic basis of the Negotiated

Rate.