T.W. Phillips Pipeline Corp.

Original Volume No. 1

Effective Date: 01/01/2010, Docket: RP10-141-000, Status: Effective

Original Sheet No. 59 Original Sheet No. 59

GENERAL TERMS AND CONDITIONS

(Continued)

18.5 Interim Adjustment to FRP: If Transporter determines that actual Fuel and Gas

Loss quantities diverge significantly from the quantities retained through the

FRP mechanism, Transporter may make an interim limited Natural Gas Act section 4

filing to revise the FRP.

19. BILLING AND PAYMENT

19.1. Transporter shall render invoices on or before the tenth (10th) day of each month

for all Gas delivered in the preceding monthly billing period. Invoices may be

rendered to Shipper by mail, electronically or facsimile. When information neces-

sary for billing purposes is in the control of Shipper, such information shall be

delivered to Transporter by Shipper on or before the fifth (5th) day of the month

following the month in which service was provided.

19.2. Shipper shall pay to Transporter at its designated office on or before the fif-

teenth (15th) day of each month for the Gas delivered by Transporter during the

preceding month and invoices by Transporter.

19.3. Should Shipper fail to pay the entire amount of any invoice as herein provided

when such amount is due, Shipper shall pay a Charge for Late Payment. Such

Charge for Late Payment shall be determined by multiplying (a) the unpaid portion

of the invoice, by (b) the ratio of the number of days from the due date to the

date of actual payment of 365, and by (c) the interest rate determined in accor-

dance with Section 154.501 (d) of the Commission’s regulations. If such failure

to pay continues for thirty (30) days after payment is due, Transporter may sus-

pend service; and, if Transporter has provided Shipper and the Commission with at

least thirty (30) days notice that service will terminate due to the non-payment,

Transporter, in addition to any other remedy it may have under the service con-

tract, may after application to and authorization by the Commission, if that

authorization is necessary, terminate the service contract; provided however,

that if Shipper in good faith shall dispute the amount of any such invoice or part

thereof and shall pay to Transporter such amounts as it concedes to be correct in

addition to providing such remittance detail and documentation indentifying the

basis of the dispute, and at any time within thirty (30) days after a demand is

made by Transporter shall furnish good and sufficient surety bond or such other

mutually agreeable security, guaranteeing payment to Transporter of the amount

ultimately found due upon such invoices after a final determination, which may be

reached either by agreement or judgment of the courts, as may be the case, then

Transporter shall not be entitled to terminate the FT or IT Agreement until de-

fault be made in the conditions of such bond.