Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective

Original Sheet No. 346 Original Sheet No. 346

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

7. PAYMENTS (Continued)

 

(c) Failure to Pay

 

Should Buyer fail to pay all of the amount of any bill as herein provided when such

amount is due, interest on the unpaid portion of such amount shall accrue at the rate

equal to the interest rate calculated in accordance with 18 C.F.R. Section

154.501(d)(1) of the Commission's Regulations or its successor from the due date until

the date of payment. If such failure to pay continues for 30 days after payment is

due, Seller, in addition to any other remedy it may have hereunder, may notify a buyer

in writing of its nonpayment, allowing Buyer thirty days to make payment of any unpaid

amount and to provide assurances satisfactory to Seller that such non-payment will not

recur. Seller will not suspend service under this Section 7(c) until ten days after

the end of such thirty-day period, and then only upon written notice to Buyer and the

Commission.

 

If Buyer in good faith shall dispute the amount of any such bill or any part thereof,

Buyer shall provide written notice of its dispute including documentation identifying

basis of dispute and shall either (1) pay to Seller the full amount of such bill,

subject to refund as described in Section 7(d) below, or (2) pay to Seller such amount

as it concedes to be correct, and at any time thereafter within 30 days of a demand

made by Seller, shall furnish good and sufficient surety bond from a surety on the

U.S. Treasury approved list guaranteeing payment to Seller of the amount finally

determined to be due. If, under option (2) as set forth in the immediately preceding

sentence, Buyer, at Seller's demand, posts a surety bond and the amount finally

determined to be due is that amount which Buyer asserted in its written notice of its

dispute as being the correct amount due, then Seller shall reimburse Buyer for the

amount of the premium paid for the surety bond obtained by Buyer. Upon (1) payment of

such bill in full in the manner hereinabove described or (2) the furnishing of such

bond by Buyer (unless and until default be made in the conditions of such bond),

Seller shall not be entitled to suspend service pending a determination of the final

amount due. If Buyer provides notice of its dispute and fails to (1) pay all or any

part of such bill or (2) furnish a bond, Seller may take action to suspend service in

the manner hereinabove described. A final, non-appealable determination of the amount

due may be reached either by agreement between the parties, arbitration, or judgment

of a court.

 

(d) Over or Under Charges

 

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

from the date of the initial sales invoice with a 3-month rebuttal period, it shall be

found that Buyer has been overcharged or undercharged in any form whatsoever under the

provisions hereof, and Buyer shall have actually paid the bills containing such

overcharge or undercharge, then within 30 days after the final determination thereof,

Seller shall refund the amount of any such overcharge with interest thereon at the

rate equal to the interest rate calculated in accordance with 18 C.F.R. Section

154.501(d)(1) of the Commission's Regulations or its successor from the time such

overcharge was paid to the date of refund, and Buyer shall pay the amount of any

undercharge but without interest.