Total Peaking Services, L. L. C.

Original Volume No. 1

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Effective Date: 04/01/1998, Docket: CP96-339-001, Status: Effective

Original Sheet No. 76 Original Sheet No. 76 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

12. BILLING (Continued)

 

12.7 Right to Audit. Both Total Peaking and Customer shall have the

right at their own expense to examine and audit at any reasonable

time the books, records (including measurement, billing and

payment) and charts of the other to the extent necessary to

verify the accuracy of any statements or charges made under or

pursuant to any of the provisions of Customer's service

agreement. Upon request, Customer shall also make available to

Total Peaking for audit purposes any relevant records of the

Transporters to which Customer has access. A formal audit of

accounts shall not be made more often than once each Contract

Year. Any inaccuracy will be promptly corrected when discovered;

provided, however, that neither Total Peaking nor Customer shall

be required to maintain books, records or charts for a period of

more than two (2) Contract Years following the end of the

Contract Year to which they are applicable. Neither Total

Peaking nor Customer shall have any right to question or contest

any charge or credit if the matter is not called to the attention

of the other in writing within two (2) years after the end of the

Contract Year in question.

 

13. TAXES

 

If at any time Total Peaking is required to remit any taxes assessed on

the gas pursuant to Customer's service agreement, then Total Peaking

shall have the right to collect from Customer such taxes, including any

penalties and interest. Customer agrees to reimburse Total Peaking for

the taxes assessed on the gas, including any penalties and interest,

within fifteen (15) days of the date of invoice from Total Peaking.

Customer recognizes that Total Peaking may be required to file federal

and state tax returns, and Customer agrees to furnish Total Peaking

with adequate information pertaining to the taxation on the gas.

 

14. INSURANCE

 

Customer shall be responsible for providing its own insurance coverage

with respect to its gas in the Total Peaking LNG facilities.