Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 02/01/2006, Docket: RP06-160-000, Status: Effective

Second Revised Sheet No. 159 Second Revised Sheet No. 159 : Effective

Superseding: First Revised Sheet No. 159

GENERAL TERMS AND CONDITIONS

(Continued)

 

15. CAPACITY RELEASE PROGRAM (Continued)

 

15.10 Invoicing and Payment. (Continued)

 

the date of receipt of Transporter's invoice by the

Replacement Shipper. The Default Invoice will also reflect

a credit for any and all amounts paid to Transporter by the

Replacement Shipper, including any amounts related to

payment of the Release Usage Rate and Release Volumetric

Surcharges to the extent that the Release Usage Rate and

Release Volumetric Surcharges are less than or equal to the

corresponding usage rates and volumetric charges and

surcharges paid by the Releasing Shipper to Transporter for

service under the Transportation Service Agreement or

Released Transportation Service Agreement, as applicable.

The Releasing Shipper will pay the amount of the Default

Invoice to Transporter within the applicable period of time

prescribed in the Releasing Shipper's Service Agreement for

payment of invoices. The Releasing Shipper will be solely

responsible for seeking and obtaining reimbursement for any

such payment from the Replacement Shipper; provided,

however, that Transporter will credit the Releasing

Shipper's next invoice following Transporter's receipt of

any payment by the Replacement Shipper of any amounts

reflected in any Default Invoice which were paid by the

Releasing Shipper. The foregoing credit will include any

interest on such amounts paid by the Replacement Shipper

which may have accrued commencing ten Days after the date on

which the relevant payment from the Replacement Shipper was

received by Transporter.

 

(d) Failure by the Releasing Shipper or the Replacement Shipper

to maintain creditworthiness or to pay timely all or any

portion of any invoice from Transporter, including any

failure by the Releasing Shipper to pay timely the amount of

any Default Invoice, will entitle Transporter to exercise

the remedies available under the Base Transportation Service

Agreement and this Tariff, including suspension and

termination of service to the Releasing Shipper and/or the

Replacement Shipper, as warranted, as well as any other

remedies available to Transporter.

 

If Releasing Shipper's Transportation Service Agreement is

terminated, or rejected in bankruptcy, Replacement Shipper

may continue to receive service if such Shipper agrees to

pay, for the remaining term of Replacement Shipper's

Transportation Service Agreement, the lesser of (1)

Releasing Shipper's contract rate; (2) the maximum tariff

rate applicable to Releasing Shipper's capacity; or (3)

another rate acceptable to Transporter.