Pine Needle LNG Company, LLC

Original Volume No. 1

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Effective Date: 02/01/2000, Docket: RP00-141-000, Status: Effective

First Revised Sheet No. 50 First Revised Sheet No. 50 : Effective

Superseding: Original Sheet No. 50

GENERAL TERMS AND CONDITIONS

(Continued)

7. PAYMENTS (Continued)

(b) Failure to Pay

Should Customer 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 from the due date until the date of payment.

If such failure to pay continues for 30 days after payment is due,

Pine Needle, in addition to any other remedy it may have hereunder,

may notify Customer in writing of its nonpayment, allowing Customer

thirty days to make payment of any unpaid amount and to provide

assurances satisfactory to Pine Needle that such non-payment will not

recur. Pine Needle will not suspend service under this Section 7(b)

until ten days after the end of such thirty-day period, and then only

upon written notice to Customer and the Commission.

If Customer in good faith shall dispute the amount of any such bill or

any part thereof, Customer shall provide written notice of its dispute

including documentation identifying basis of dispute and shall either

(1) pay to Pine Needle the full amount of such bill, subject to refund

as described in Section 7(c) below, or (2) pay to Pine Needle such

amount as it concedes to be correct, and at any time thereafter within

30 days of a demand made by Pine Needle, shall furnish good and

sufficient surety bond from a surety on the U.S. Treasury approved

list guaranteeing payment to Pine Needle of the amount finally

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

immediately preceding sentence, Customer, at Pine Needle's demand,

posts a surety bond and the amount finally determined to be due is

that amount which Customer asserted in its written notice of its

dispute as being the correct amount due, then Pine Needle shall

reimburse Customer for the amount of the premium paid for the surety

bond obtained by Customer. Upon (1) payment of such bill in full in

the manner hereinabove described or (2) the furnishing of such bond by

Customer (unless and until default be made in the conditions of such

bond), Pine Needle shall not be entitled to suspend service pending a

determination of the final amount due. If Customer provides notice of

its dispute and fails to (1) pay all or any part of such bill or (2)

furnish a bond, Pine Needle 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.

If within 6 months from the date of the initial invoice with a 3-month

rebuttal period, it shall be found that Customer has been overcharged

or undercharged in any form whatsoever under the provisions hereof,

and Customer shall have actually paid the bills containing such

overcharge or undercharge, then within 30 days after the final

determination thereof, Pine Needle 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 from the time such overcharge was paid to

the date of refund, and Customer shall pay the amount of any

undercharge but without interest.