Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/1998, Docket: CP96-655-003, Status: Effective

Original Sheet No. 105 Original Sheet No. 105 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

Section 18.4 (continued)

 

(b) RELEASING SHIPPER: The RELEASING SHIPPER shall remain fully

liable on its existing Service Agreement with the COMPANY for

the payment of all reservation charges for the contract

quantity which has not been released permanently, associated

surcharges, fixed charges, and direct bills owing to the

COMPANY each month under the existing Service Agreement, as

well as for services performed for or penalties incurred by

the RELEASING SHIPPER under its firm Service Agreement with

respect to any remaining capacity thereunder.

 

18.5 Billing and Payment:

 

An ACQUIRING SHIPPER shall be billed by the COMPANY and shall make

payments to the COMPANY in accordance with the terms of its executed

Service Agreement. On the RELEASING SHIPPER's bill for a month in

which it released capacity hereunder on a temporary basis, COMPANY

shall credit all reservation charge revenues billed by COMPANY to the

ACQUIRING SHIPPER for the released capacity; provided, however,

that in the event the ACQUIRING SHIPPER fails to pay COMPANY for any

part of the amount credited to the RELEASING SHIPPER's bill, COMPANY

reserves the right, after it exhausts any credit it has on file for

the ACQUIRING SHIPPER, to reverse the credit on the RELEASING

SHIPPER's bill in a later month up to the unpaid amount plus interest

thereon. If the ACQUIRING SHIPPER fails to pay its reservation

charges pursuant to the provisions of Section 15 of these General

Terms and Conditions, the RELEASING SHIPPER shall have the right to

recall its capacity by notifying the ACQUIRING SHIPPER and COMPANY of

such recall pursuant to the provisions of Section 18.3(b)(3) above.

All reservation charge credits to the RELEASING SHIPPER's bill shall

be final and nonreversible upon COMPANY's receipt of payment therefor

from the ACQUIRING SHIPPER. Unless COMPANY agrees otherwise in

writing, COMPANY shall not be required to credit all reservation