Valero Interstate Transmission Company
First Revised Volume No. 2
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Effective Date: 11/01/1991, Docket: GT91- 42-000, Status: Effective
Original Sheet No. 35 Original Sheet No. 35 : Superseded
(a) Interstate shall directly bill Buyer in one lump sum, twenty-
five percent (25%) of its take-or-pay buy-out and buy-down costs within
fifteen (15) days following the date payment is made by Interstate. Buyer
shall pay to Interstate this lump sum within fifteen (15) days of receipt
of invoice from Interstate.
(b) Interstate shall bill Buyer, on a monthly basis over thirty-six
(36) months a Take-or-Pay Commodity Rate Surcharge as defined in the
provisions filed as Exhibit (E) in Docket No. RP90-187-000, which shall be
calculated to recover fifty percent (50%) of Interstate's take-or-pay
buy-out and buy-down costs. Such Commodity Rate Surcharge shall include
carrying charges determined in accordance with Section 154.67 of the
FERC's Regulations. Upon termination of thirty-six (36) months from the
date of first delivery under this Agreement the then current unpaid balance
of fifty percent (50%) of Interstate's take-or-pay buy-out and buy-down
costs in the unrecovered take-or-pay cost account shall become due and
payable 60 days after expiration of the thirty-six (36) month period.
Buyer shall pay this amount within fifteen (15) days of receipt of invoice
from Interstate. Such invoice shall include a statement showing the
derivation of the unpaid balance.
3. On or before the twentieth (20th) day of each calendar month after
deliveries of gas are commenced hereunder, Interstate shall render a
statement to Buyer showing the volume of gas delivered during the preceding
calendar month, and the amount due therefor. Buyer shall pay any amounts
due prior to the first day of the following month.
4. If Buyer should fail to pay the full amount due Interstate when, the
same is due, as herein provided, and Interstate incurs expenses resulting
from the failure of Buyer to pay, then Buyer shall reimburse Interstate for
the interest paid by Interstate arising from those expenses. If such
failure to pay continues for sixty (60) days, Interstate may suspend
deliveries of gas hereunder or cancel this Agreement, but the exercise of
such right shall be in addition to any and all other remedies available to
5. Each party shall have the right at all reasonable times to examine
the books, records, and charts of the other party to the extent necessary
to verify the accuracy of any statement, charge, computation, or demand
made under or pursuant to any of the provisions of this Agreement.