High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 04/01/2007, Docket: RP07-575-000, Status: Effective

Second Revised Sheet No. 228 Second Revised Sheet No. 228 : Effective

Superseding: First Revised Sheet No. 228

 

 

NGL BANK AGREEMENT (Continued)

 

 

All fees provided for in this Section 5.4 shall be adjusted as of the first day

of April each year commencing April 1, 2005. The adjustment shall be computed by

multiplying the cost and/or fee then in use by the percentage increase in the

average weekly earnings of Crude Petroleum and Gas Production Workers for the

last calendar year compared with the calendar year preceding as shown by the

Index of average weekly earnings of Crude Petroleum and Gas Production Workers as

published by the United States Department of Labor, Bureau of Labor Statistics.

Such adjustment shall be effective each April 1, and shall be applicable from

said date until March 31 of the following year.

 

All fees provided for in this Section 5.4 shall be adjusted as of the first day of

April each year commencing April 1, 2006. The adjustment shall be computed by

multiplying the cost and/or fee then in use by the percentage increase as posted by

the Council of Petroleum Accountants Societies (COPAS) "Model Form Interpretation

50 - Overhead Adjustment Index" or similar index, if COPAS is not available, for

the last calendar year compared with the calendar year preceding as shown by COPAS

or similar index. Such adjustment shall be effective each April 1, and shall be

applicable from said date until March 31 of the following year.

 

 

5.5 NGL Bank Billings and Payments. Administrator shall invoice Shipper or its agent

for any net NGL Bank settlement amounts due plus NGL Bank administrative fees no

later than 5 business days after providing settlement statements. Shipper agrees

that it, or its agent, will abide by and will pay any such invoice in accordance

with the provisions of Transporter's FERC Gas Tariff. Designation of an agent

shall not relieve Shipper from any rights or responsibilities arising from this

Agreement.

 

Administrator shall remit payment from the NGL Bank to Shipper or its agent for

any net NGL Bank settlement amounts payable less NGL Bank administrative fees no

later than 30 days after providing settlement statements. To the extent that all

monies due the NGL Bank for a particular month are not received in a timely manner

from shippers owing the NGL Bank, Administrator shall pro-rate monies available

for disbursement from the NGL Bank to shippers owed monies by the NGL Bank based

upon the total amount owed any such shipper compared with the total amount owed to

all shippers for that month. Administrator shall make appropriate adjustments in

the succeeding months until any such shortfalls have been satisfied; provided,

however, that Administrator shall not be required to pay interest on the unpaid

portion of any amount due any shipper. Notwithstanding anything to the contrary

herein, in no event shall Administrator be obligated to pay out more funds from

the NGL Bank than it has received from shippers, after deduction for

administrative fees.

 

Shipper will be charged interest on late payments or partial payments in

accordance with the provisions of Transporter's FERC Gas Tariff and also will be

subject to all other remedies for non-payment available to Transporter as provided

by Transporter's FERC Gas Tariff. Any interest collected by Administrator

hereunder attributable to payment shortfalls into the NGL Bank shall be pro-rated

among those shippers owed money from the NGL Bank taking into consideration the

amount owed and the length of time such amount has been owed.

 

Shipper acknowledges and agrees that Administrator shall not be obligated to

disperse any NGL Bank settlement funds to Shipper unless and until Administrator

has received sufficient settlement funds from other shippers to pay the amounts

due Shipper. It is the intent of the parties hereto that Administrator shall act

only as a conduit for NGL Bank settlement funds and shall have no obligation or

liability for any settlements due Shipper.

 

Administrator shall have the operational authority to net out any funds due

Shipper(s) against funds owed by Shipper(s) that are delinquent on payments to the

NGL Bank. Shipper(s) will not have the same operational authority to net out

funds due the NGL Bank against funds due Shipper(s).