U-T Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective

First Revised Sheet No. 52 First Revised Sheet No. 52 : Superseded

Superseding: Original Sheet No. 52

GENERAL TERMS AND CONDITIONS

(Continued)

When information necessary for billing purposes is in the control of Shipper,

Shipper shall furnish such information to U-TOS on or before the 15th day of the

month.

Shipper and U-TOS shall have the right to examine at reasonable times, books,

records, and charts of the other to the extent necessary to verify the accuracy

of any statement, charge, or computation made under or pursuant to any of the

provisions hereof.

10.2 Payment. Shipper shall pay U-TOS, at its general office, or at such other

address as U-TOS shall designate, no later than ten (10) days after the date of

the statement, the amount due for the preceding month. All payments shall

reference the statement number.

If presentation of a bill by U-TOS is delayed after the 9th business day of the

month, then the time of payment shall be extended accordingly unless Shipper is

responsible for such delay. Should Shipper fail to pay all or any portion of

the amount of any bill as herein provided when such amount is due, interest on

the unpaid portion of the bill shall accrue at the rate specified in Section

154.67(c)(iii) of the Commission's regulations. If such failure to pay

continues for 30 days after payment is due, U-TOS, in addition to any other

remedy it may have hereunder, and subject to whatever regulatory authority may

be necessary, may suspend further delivery of Gas until such amount is paid;

provided, however, that if Shipper in good faith shall dispute the amount of any

such bill or part thereof and shall timely pay to U-TOS such amounts as it does

not in good faith dispute and, at any time thereafter within 30 days of a demand

made by U-TOS, shall furnish a good and sufficient surety bond in an amount, on

a form and with surety satisfactory to U-TOS, guaranteeing payment to U-TOS of

the amount ultimately found due upon such bills after a final determination

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

the case, then U-TOS shall not be entitled to suspend further delivery of Gas

on account of non-payment of such sum unless and until default be made in the

conditions of such bond. For any amount to be considered "disputed", Shipper

must provide remittance detail identifying which portion of the statement amount

is being disputed and appropriate documentation supporting and identifying the

basis for the dispute, in accordance with Section 10.3.

10.3 Adjustment of Billing Errors. Subject to the provisions of Section 3.10 and

3.12 hereof, if an error is discovered in the allocated quantities, the rate

billed, or any other item in any statement rendered by U-TOS, Shipper shall make

a claim therefor within six (6) months of the date of such statement. U-TOS

shall have three (3) months from the date the claim is made to dispute or

resolve the claim. If there is an agreement as to the amount of an error, any

adjustment shall be made within thirty (30) days of the determination thereof.

Such time limits shall not apply in the case of government required rate

changes, deliberate omission or misrepresentation, or mutual mistake of fact.

If the parties are unable to agree on the adjustment of any claimed error, any

resort by either of the parties to legal procedure, either at law, in equity,

or otherwise, shall be commenced within 15 months after the supposed cause of

action is alleged to have arisen, or shall thereafter be forever barred.