U S G Pipeline Company

ORIGINAL VOLUME NO. 1

Effective Date: 05/01/2001, Docket: RP01-385-000, Status: Effective

First Revised Sheet No. 52 First Revised Sheet No. 52 : Effective

Superseding: Original Sheet No. 52

GENERAL TERMS AND CONDITIONS

10.3 Monthly payment date: Shipper (or other payor) shall pay

Transporter, via electronic means as designated on each monthly bill,

so that payment is received and Transporter has available funds

within ten (10) calendar days from the date of the invoice, for the

gas service purchased by Shipper during the preceding month and

invoiced by Transporter pursuant to this Tariff or the gas service

agreement. Shipper (or other payor) shall provide Transporter with

supporting documentation with any payment as well as the appropriate

invoice number on the payment(s). Transporter shall apply the

payment pursuant to the supporting documentation provided. When

payment is made by electronic funds transfer, the remittance detail

is due within two (2) Business Days of the payment due date.

10.4 Remedies for nonpayment: Should Shipper fail to pay all of the

amount of any invoice as herein provided when such amount is due,

Shipper shall pay a Charge for Late Payment. Such Charge for Late

Payment shall be determined by multiplying (a) the unpaid portion of

the invoice, by (b) the ratio of the number of days from the due date

to the date of actual payment to 365, and by (c) the interest rate

determined in accordance with Section 154.67 of the Commission's

regulations. If such failure to pay continues for thirty (30) days

after payment is due, Transporter may suspend service; and, if

Transporter has provided Shipper and the FERC with at least thirty

(30) days notice that service will terminate due to the non-payment,

Transporter, in addition to any other remedy it may have under the

service contract, may, after application to and authorization by the

FERC, if that authorization is necessary, terminate the service

contract; provided, however, that if Shipper in good faith shall

dispute the amount of any such invoice or part thereof and shall pay

to Transporter such amounts as it concedes to be correct in addition

to providing such remittance detail and documentation identifying the

basis for the dispute, and at any time within thirty (30) days after

a demand made by Transporter shall furnish good and sufficient surety

bond, guaranteeing payment to Transporter 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 Transporter shall not be entitled to terminate the gas

service agreement until default be made in the conditions of such

bond.