Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 330 Original Sheet No. 330 : Pending

 

 

GENERAL TERMS AND CONDITIONS

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5.11 DELINQUENCY IN PAYMENT

 

(a) Irrespective of any otherwise applicable priority, Natural

may suspend service to any Shipper which is delinquent in payments under

any Agreement, subject to the following conditions:

 

(1) Natural shall give Shipper written notice of the

delinquency and of Natural's intent to suspend service if the deficiency

is not cured. If the delinquency is not remedied within fifteen (15) days

of such notice, Natural may suspend service. Natural shall simultaneously

provide written notice to the Commission of any such suspension.

 

(2) If a Shipper which has been deficient in payment

hereunder is again deficient in payment within six (6) months after the

prior deficiency, then Natural may suspend service to such Shipper within

five (5) Business Days after providing notice hereunder unless Shipper

remedies the deficiency within that time period. A Shipper shall not be

obligated to pay any reservation or demand charges for suspended service

attributable to the period when that service is suspended.

 

(b) In addition to suspension, Natural may terminate service if

the Shipper fails to remedy a delinquency in payment. Any such

termination requires thirty (30) days' prior notice to Shipper and to the

Commission. To avoid termination, the Shipper must remedy the deficiency

within this notice period. Such notice may be given simultaneously with

the initial notice under Section 5.11(a)(1) of these General Terms and

Conditions or with the notice under Section 5.11(a)(2) of these General

Terms and Conditions.

 

(c) In the event of a good faith billing dispute, withholding

of payment for the amount in dispute by Shipper shall not be considered a

delinquency in payment, consistent with Section 15 of these General Terms

and Conditions, and will not result in suspension or termination of

service.

 

(d) Natural may not take any action under this Section 5.11

which conflicts with any order of the U.S. Bankruptcy Court.

 

5.12 DETERIORATION OF CREDIT

 

(a) (1) If at any time Natural reasonably determines based on

adequate information available to it that a Shipper is not creditworthy

under Section 16(a) of these General Terms and Conditions or if Shipper

fails to maintain assurance of future performance under Section 16(b) of