Pacific Interstate Offshore Company

Second Revised Volume No. 1

Effective Date: 01/01/1994, Docket: RS92- 73-001, Status: Effective

Original Sheet No. 45 Original Sheet No. 45 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

9. BILLING AND PAYMENT (cont'd)

9.5 Errors in Billing

In the event of an error in billing in any statement

rendered by Transporter, such error shall be

adjusted within 30 days after a claim is made,

provided such claim is made within 36 months from

the date of the statement.

If the error is discovered after payment has been

made by Shipper, Transporter shall refund the amount

of any resulting overcharge with penalty thereon at

the same rate provided for late payment of bills,

and Shipper shall pay the amount of any resulting

undercharge but without penalty.

If the parties are unable to agree on the adjustment

or refund alleged to be required as a result of a

claimed billing error, commencement of any legal

procedures, either at law, in equity or otherwise,

shall take place no later than 39 months after the

date of the statement or shall forever be barred.

9.6 Disputed Statements

In case any portion of a statement shall be in

dispute, Shipper shall make provisional payment of

the total amount thereof subject to reimbursement

for any overcharge; however, the payment of such

disputed portion shall not be deemed to be a waiver

of the rights of the party affected to contest the

disputed portion of the statement. Failure to make

such provisional payment shall constitute a default

under this agreement.