Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 10/01/2002, Docket: RP02-449-000, Status: Effective

First Revised Sheet No. 145 First Revised Sheet No. 145 : Effective

Superseding: Original Sheet No. 145






18. Payments (Continued)


(b) Failure to Pay (Continued)


under the applicable Service Agreement(s), may suspend

further delivery of gas until such amount is paid.

Provided, however, that if Buyer, in good faith shall

dispute the amount of any such bill or part thereof in

writing, including documentation identifying the basis of

dispute, and shall pay to Seller such amounts as it

concedes to be correct at any time thereafter within

thirty (30) calendar days of a demand made by Seller, and

Buyer furnishes good and sufficient surety bond

guaranteeing payment to Seller of the amount ultimately

found due upon such bill after a final determination

which may be reached either by agreement or judgment of

the courts, as may be the case, then Seller shall not

suspend further delivery of gas unless and until default

be made in the conditions of such bond. If Buyer

furnishes good and sufficient surety bond and amounts are

ultimately not due to Seller, then Seller will bear

unrecovered surety bond costs incurred by Buyer.


(c) Adjustment of Overpayment or Underpayment


If within twelve (12) months of the date of payment it

shall be found that Buyer has been overcharged or

undercharged in any form whatsoever under the provisions

hereof, and Buyer shall have actually paid the bill(s)

containing such overcharge, then within sixty (60)

calendar days after the final determination thereof,

Seller shall refund the amount of any such overcharge

with interest thereon from the time such overcharge was

paid to the date of refund. Interest shall be computed

in the manner provided in Section 154.501(2)(d)(1) of the

Commission's regulations. Buyer shall pay the amount

of any such undercharge but without interest.