Pacific Interstate Transmission Company

Original Volume No. 1

Effective Date: 05/15/1982, Docket: GT97- 67-000, Status: Effective

First Revised Sheet No. 111 First Revised Sheet No. 111 : Effective

Superseding: Original Sheet No. 111

GENERAL TERMS AND CONDITIONS (Continued)

5. BILLING AND PAYMENT

5.1 Billing: On or before the fifteenth day of each billing month, Seller

shall cause to be received by Buyer an invoice for the amount payable

under Buyer's Service Agreement during such billing month. Such

invoice shall reflect:

(a) Buyer's Monthly Charge for the immediately preceding billing

month, computed pursuant to Section 7 of Rate Schedule CQS-l;

and

(b) other charges or credits to Buyer hereunder;

and shall set forth in reasonable detail the basis of determining the

amount shown thereby to be payable.

5.2 Paynent:

5.21 The amount invoiced pursuant to Section 5.1 hereof in a billing

month shall be paid by Buyer to Seller or, if such invoice shows

an amount owing to Buyer, by Seller to Buyer, on or before the

twenty-fifth day of such billing month, except that as to the

portion of such invoice covering billings from Seller's

suppliers of gas, payment shall be made on such date as Seller is

required to make payment to its suppliers. Each such payment by

Buyer shall be made at Seller's principcal office; provided that

Seller by written notice to Buyer, may require Buyer to pay all

or a designated portion of such amount at another place from time

to time specified by Seller and/or to such other Person as Seller

shall from time to time designate.

5.22 Buyer shall, without further notice or demand, make payments pur-

suant to Subsection 5.21 hereof irrespective of any dispute rela-

tive to the amount invoiced, and shall not be entitled to any

abatement of such payments or any set-off against them, includ-

ing, but not limited to, abatement or set-off due or alleged to

be due by reason of any past, present or future claims of Buyer

against Seller under Buyer's Service Agreement or otherwise. If

any portion of an amount so paid to Seller by Buyer is finally

determined to be repayable to Buyer, Seller shall pay or credit

such amount to Buyer, together with interest thereon at the

Interest Rate.

(Continued)