Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 08/01/2009, Docket: RP09-684-000, Status: Effective

Third Revised Sheet No. 119 Third Revised Sheet No. 119

Superseding: Second Revised Sheet No. 119

 

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

 

8. PAYMENT (Continued)

 

8.3 Remedies for Failure to Pay: (Continued)

 

However, if Shipper, in good faith, disputes the amount of any bill

or part thereof by providing written notice of its dispute

including documentation identifying the basis of the dispute and 1)

promptly pays to Transporter the undisputed amount, and 2)

furnishes to Transporter a good and sufficient letter of credit in

an amount and with surety satisfactory to Transporter, or provides

other assurance acceptable to Transporter guaranteeing payment to

Transporter of the amount ultimately found due upon the bill after

a final determination that may be reached either by agreement or by

judgement of the courts, as may be the case, then Transporter shall

not be entitled to automatically suspend or terminate service under

the Transportation Service Agreement(s) unless and until a default

is made in the conditions of the letter of credit or other

assurance; provided further that should Shipper prevail on the

dispute, Transporter shall reimburse Shipper up to the reasonable

and customary costs of the letter of credit or other assurance

provided.

 

8.4 Late Billing: If presentation of a bill by GTN is delayed after

the date specified in Paragraph 7.1 hereof, then the time for

payment shall be extended correspondingly unless Shipper is

responsible for such delay.

 

8.5 Adjustment of Billing Error: In accordance with NAESB Standard

3.3.15, Version 1.8, prior period adjustment time limits should be

6 months from the date of the initial transportation invoice and 7

months from date of initial sales invoice with a 3-month rebuttal

period, excluding government-required rate changes. This standard

shall not apply in the case of deliberate omission or

misrepresentation or mutual mistake of fact. Parties' other

statutory or contractual rights shall not otherwise be diminished

by this standard.

 

9. NOTICE OF CHANGES IN OPERATING CONDITIONS

 

GTN and Shipper shall each ensure that the other is notified from time to

time as necessary of expected changes in the rates of delivery or receipt

of gas, or in the pressures or other operating conditions, and the reason

for such expected changes, so that they may be accommodated when they

occur.