K O Transmission Company

Original Volume No. 1

Effective Date: 04/01/2009, Docket: RP09-394-000, Status: Effective

Second Revised Sheet No. 88 Second Revised Sheet No. 88

Superseding: First Revised Sheet No. 88

GENERAL TERMS AND CONDITIONS (continued)

11. Payment (con’t.)

11.4 Bona fide disputes

In the event of a bona fide dispute between Shipper and Transporter concerning

the amount of the unpaid bill, Transporter shall not suspend service under the

procedure outlined in 11.3(b) above when Shipper acts in a timely manner to

provide additional information and security for the Transporter in accordance

with the following procedures:

(a)

Identification of the dispute: Within ten (10) days after the due date of any

payment, Shipper shall notify Transporter by written notice of any amount billed

which is in bona fide dispute, documenting all reasons and factors as to why the

billing is in dispute.

(b)

Payment security: Within ten (10) days of the due date for any payment, Shipper

shall either (i) pay in full the amount indicated on the disputed billing,

without prejudice to the Shipper's rights to dispute all or part of said amount

and subject to the return of the disputed amount so identified, with interest

calculated in accordance with Section 11.3 after resolution of the dispute in

favor of the Shipper, or (ii) pay the undisputed portion of the billing in full

and furnish good and sufficient surety bond, guaranteeing payment to Transporter

of all amounts ultimately found due after resolution the dispute, including

interest charges which accrue until resolution of the dispute which may be

reached by both parties either by agreement or court judgment.

11.5 Suspension or Termination for Nonpayment

If Shipper under any Rate Schedule becomes delinquent by ten (10) days in the

payment of any invoice, then such Shipper shall provide adequate assurance of

payment to Transporter within ten (10) days of the date of Transporter's written

notice of such delinquency. If Shipper does not, within such ten (10) day

period, pay the invoice together with accrued interest, or does not provide

adequate assurance of payment in accordance with the provisions of this Section,

Transporter, in addition to other remedies it may have, may commence suspension

of service procedures by:

a) sending a first written notice to Shipper informing Shipper that its service

will be suspended and its Service Agreement