Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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Effective Date: 12/01/2000, Docket: RP01- 70-000, Status: Effective

First Revised Sheet No. 53E First Revised Sheet No. 53E : Effective

Superseding: Original Sheet No. 53E

 

GENERAL TERMS AND CONDITIONS - continued

 

(c) If a Replacement Shipper or Subreplacement Shipper

does not make payment to Transporter of the reservation portion of

the charges due as set forth in its Released Firm Transportation

Agreement, Transporter shall bill the Releasing Shipper(s) from whom

such Replacement or Subreplacement Shipper received the capacity for

the amount(s) due, including all applicable late charges authorized

by Transporter's Tariff, and such amount shall be paid by such

Releasing Shipper within ten (10) days of the receipt of such

billing, or interest shall continue to accrue. In the event that the

Replacement or Subreplacement Shipper has not paid such amount(s) due

by the end of such ten (10) day period, then: (1) the Releasing

Shipper has the right to recall the capacity; and (2) Transporter's

rights against the delinquent Replacement/Subreplacement Shipper

shall be subrogated to the related rights of the Releasing Shipper.

Transporter shall make a reasonable effort to collect from the

Replacement/Subreplacement Shipper the amount(s) due. Such reasonable

effort shall not include incurring costs from outside attorneys,

collection agents or other third parties.

 

(d) All payments received from a Replacement or

Subreplacement Shipper shall first be applied to reservation charges,

then to late charges on reservation charges, then to scheduling

charges and cashout amounts, then to late charges not on the

reservation charges, and then last to commodity-based charges.

Payments by Replacement or Subreplacement Shippers in excess of the

total amount(s) due for the Released Firm Transportation Agreement

capacity shall be a credit applied to any outstanding balance owed

under any contract with Transporter, or a refund if requested in

writing and no such outstanding balance exists.

 

(e) Pursuant to the provisions of Section 36 of the

General Terms and Conditions, Transporter and Releasing Shipper may

agree upon payment obligations and credit mechanisms in the event of

capacity releases that vary from or are in addition to those set

forth in this Section 23.13.