Sea Robin Pipeline Company

First Revised Volume No. 1

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Effective Date: 08/01/1997, Docket: RP97-411-000, Status: Effective

Original Sheet No. 155K Original Sheet No. 155K : Superseded

 

FORM OF SERVICE AGREEMENT UNDER

RATE SCHEDULE FTS-2 (Continued)

 

5.2 Transporter's services hereunder are contingent

upon Shipper's obligation to pay for the services

contemplated under the FTS-2 Agreement in a timely

fashion. Except to the extent there is a good

faith dispute as to the amount of a bill, in which

case payment shall be made in accordance with

Section 8.2 of the General Terms and Conditions,

if at any time Shipper is more than twenty

(20) days in arrears in its payments to

Transporter for service provided hereunder and

upon prior notice to Shipper, Transporter may

suspend performance of future service pending

such assurance of payments, may demand reasonable

security for payment, or may require advance

payment in cash or on a more frequent basis than

a monthly billing cycle, or may take such other

action as Transporter deems reasonable under the

circumstances to protect Transporter's interests.

Notwithstanding the foregoing, however, (a) Transporter

will not suspend performance of service if Shipper prepays for

three (3) months of service assuming full

contract quantity or posts a surety bond in that

amount, and (b) Transporter will not terminate

service to Shipper prior to receiving abandonment authorization

to the extent required by Section 7 (b) of the Natural Gas Act.

Transporter may also require Shipper at any time to supply

Transporter with credit information including, but not limited to

three (3) credit references, Shipper's most recent audited or otherwise

verified financial statement, annual report and Form 10-K.

 

ARTICLE VI

TRANSPORTATION CHARGES

 

6.1 Shipper shall pay Transporter monthly for the

transportation service rendered hereunder the

charges specified in Rate Schedule FTS-2,

including any penalty, imbalance cash-out and

other authorized charges assessed under Rate

Schedule FTS-2 and the General Terms and

Conditions. Transporter may agree from time to

time at its reasonable discretion on a not unduly

discriminatory basis to discount the rates charged Shipper for

services provided hereunder in accordance with the provisions

of Rate Schedule FTS-2. Any discounted rates agreed to by

Transporter shall be set forth on Exhibit C hereto.