Pacific Interstate Transmission Company

Original Volume No. 1

Effective Date: 10/01/1981, Docket: GT97- 67-000, Status: Effective

Original Sheet No. 112 Original Sheet No. 112 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

5.3 Late Billing: If the receipt of an invoice by Buyer is delayed beyond

the date provided in Subsection 5.1 hereof, then the time for payment

shall be extended correspondingly unless Buyer is responsible for such

delay.

5.4 Delinquency Charge: Should Buyer fail to pay the whole of the amount

of any invoice rendered by Seller as herein provided when such amount

is due, Buyer shall pay interest on such amount, on the unpaid portion

thereof, at the Interest Rate from the date due until paid.

5.5 Remedies for Failure to Pay Bills: If a failure by Buyer to pay in

full the amount of any invoice rendered by Seller as herein provided

shall continue for 60 days after payment is due, Seller may, after any

required application to and authorization from any regulatory authority

having jurisdiction, suspend further delivery of gas to Buyer until

such amount is paid in full, in addition to any other remedies it may

have. Such suspension shall not terminate Buyer's Service Agreement or

otherwise affect Buyer's obligations to Seller under Buyer's Service

Agreement and no reduction in Buyer's Monthly Charge pursuant to

Section 7 of Rate Schedule CQS- 1 shall be made because thereof.

5.6 Errors in Billing: If Buyer shall notify Seller in writing, at any

time within the first six months of any calendar year, that it has been

overcharged in any invoice rendered during the prior calendar year, and

that Buyer has actually paid an amount containing such overcharge, then

within 30 days after the amount of such overcharge has been agreed, or

failing agreement, has been determined by final decision of a body of

competent jurisdiction, Seller shall pay or credit the amount of such

overcharge actually paid, with interest thereon at the Interest Rate.

If Seller shall notify Buyer in writing, at any time within the first

six months of any calendar year, that there has been an undercharge in

any invoice rendered to Buyer during the prior calendar year, Buyer

shall be liable to pay the amount of such undercharge to Seller, with-

out interest, subject to the right of Buyer to thereafter seek refund

of all or a portion of such amount by agreement or by final decision of

a body of competent jurisdiction, in which event the provisions of the

first paragraph of this Subsection 5.6 shall apply.

(continued)