Viking Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 12/24/2004, Docket: RP05- 89-000, Status: Effective

Tenth Revised Sheet No. 56 Tenth Revised Sheet No. 56 : Effective

Superseding: Ninth Revised Sheet No. 56

 

GENERAL TERMS AND CONDITIONS

 

 

6. PAYMENTS (Continued)

 

6.2 Remedies for Non-Payment (Continued)

 

of FERC's regulations. Interest applicable to such bill will be invoiced to

Shipper, pursuant to Section 5 of the General Terms and Conditions, to the

extent that the amount of interest is $25 or more. If such failure to pay

continues for thirty days after payment is due and Company has provided

Customer and the FERC with at least fifteen (15) days notice that service will

terminate due to the non-payment, Company, in addition to any other remedy it

may have under the Agreement, may terminate the Agreement; provided, however,

that if Customer in good faith shall dispute the amount of any such invoice or

part thereof and shall pay to Company such amounts as it concedes to be correct

and at any time within thirty days after a demand made by Company shall furnish

good and sufficient surety bond, guaranteeing payment to Company of the amount

ultimately found due upon such invoices after a final determination which may

be reached either by agreement or judgment of the courts, as may be the case,

then Company shall not be entitled to terminate the Transportation Agreement

until a default is made in the conditions of such bond.

 

6.3 Adjustment of Underpayment, Overpayment or Error in Invoicing

 

If invoice is in dispute, Customer shall pay the portion of the invoice not in

dispute and provide documentation identifying basis for the dispute. If it

shall be found that at any time Customer has been overcharged or undercharged

in any form whatsoever under the provisions of this Tariff or the Agreement and

Customer shall have actually paid the invoices containing such overcharge or

undercharge, then within thirty days after the final determination thereof,

Company shall refund the amount of such overcharge and Customer shall pay the

amount of any such undercharge; provided, however, that interest calculated in

accordance with Subsection 6.2 of these General Terms and Conditions shall

apply to any undercharge or overcharge not paid or refunded within thirty days

from the date of the determination of such undercharge or overcharge. In the

event an error is discovered in the amount invoiced in any statement rendered

by Company such error shall be adjusted within thirty days of the determination

thereof provided that claim therefore shall have been made within sixty days

from the date of discovery of such error. [3.3.19/v1.0]

 

7. POSSESSION OF GAS

 

Unless otherwise provided in the Transportation Agreement or applicable Rate Schedule,

as between Company and Shipper, Shipper shall be deemed to be in exclusive control and

possession of the gas to be transported (i) prior to receipt by Company at the receipt

point(s), (ii) after receipt by Company, when the gas is in the custody of Shipper or

Shipper's designee for separation, processing or other handling, and (iii) after

delivery by Company at the delivery point(s); otherwise, Company shall be in exclusive

control and possession of the gas. The party which shall be in exclusive control and

possession of the gas shall be responsible for all injury or damage caused thereby to

any third party. In the absence of negligence, bad faith, fault or willful misconduct

on the part of Company, Shipper waives any and all claims and demands against Company,

its officers, employees or agents, arising out of or in any way connected with (i) the

quality, use or condition of the gas after delivery from Company for the account of

such Shipper, (ii) any losses or shrinkage of gas during or resulting from

transportation hereunder, and (iii) all other claims and demands arising out of

Company's performance of its duties hereunder.