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Original Sheet No. 155K Original Sheet No. 155K : Superseded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