Garden Banks Gas Pipeline, LLC
Original Volume No. 1
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Effective Date: 05/10/2010, Docket: RP10-594-000, Status: Effective
First Revised Sheet No. 313 First Revised Sheet No. 313
Superseding: Original Sheet No. 313
FORM OF NGL BANK AGREEMENT
5.6 Default; Remedies. For purposes of this Agreement, the term "Default"
means: (a) Shipper shall: (i) make an assignment or any general arrangement
for the benefit of creditors; (ii) file a petition or otherwise commence,
authorize, or acquiesce in the commencement of a proceeding or cause under any
bankruptcy or similar law for the protection of creditors or have such a
petition filed or proceeding commenced against it; (iii) otherwise become
bankrupt or insolvent; or (iv) be unable to pay its debts as they fall due;
(b) the failure by Shipper to make, when due, any payment required under this
Agreement if such failure is not remedied within ten (10) days after written
notice of such failure is given by Administrator, provided the payment is not
the subject of a good faith dispute; or (c) the failure by Shipper to perform
any covenant set forth in this Agreement (other than an obligation to make
payment), and such failure is not remedied within ten (10) days after written
notice thereof by Administrator. Upon the occurrence of a Default,
Administrator will have the right to exercise all rights and remedies
available to it under this Agreement, at law, and in equity, including the
rights: (a) to file suit to seek damages or equitable remedies; and (b) to
suspend performance hereunder (including, without limitation, the withholding
of any payments due hereunder) until the relevant Default has been remedied.
6.1 Shipper, upon sixty (60) days prior written notice to the Administrator
and all other shippers, shall have the right, at reasonable times, to inspect
and audit the accounts, records, documents and data of the Administrator
pertaining to the NGL Bank, provided, however, that any such audit shall be
performed within twenty-four (24) months following the end of the calendar
year for which any such accounts, records, documents and data are in question.
The cost of conducting the audit (including Administrator's costs) and
resolving the exceptions and adjustments thereto shall be borne solely by the
shipper(s) auditing the system records.
6.2 Should the audit result in a claim by a shipper, then a written response
shall be made by the Administrator as soon as practical, but in no event later
than one hundred and twenty (120) days from the date the Administrator's of
receipt of such claim. Any NGL Bank settlement adjustments determined to be
due any shipper shall be made within sixty (60) days of determination thereof.