Dauphin Island Gathering Partners

Original Volume No. 1

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Effective Date: 12/23/1997, Docket: RP98- 17-000, Status: Effective

Substitute Original Sheet No. 170 Substitute Original Sheet No. 170 : Effective

Superseding: Original Sheet No. 170

14.4 Failure to Pay:


If, except in the case of a good faith dispute, Shipper

fails to make payment to Transporter pursuant to Section

14.2, and such failure to make payment continues for twenty

(20) days or more, Transporter may suspend the further

transportation of gas under Shipper's Transportation

Service Agreements upon ten (10) days prior written notice

to Shipper and the Commission, but the exercise of such

right shall be in addition to any other remedy available to

Transporter. In such circumstance, the provisions of

Subsection 7.3 (c) of these General Terms and Conditions

shall not apply.


14.5 Good Faith Dispute:


If Shipper, in good faith, disputes the amount due

Transporter on a billing statement, Shipper shall provide

a description and supporting documentation of its position

and timely submit payment of the amount it states is due

Transporter. Transporter shall apply such payment in

accordance with Shipper's documentation. Shipper agrees

that Transporter's acceptance of a partial payment does not

waive Transporter's right to full payment after resolution

of the disputed invoice in the future. Shipper and

Transporter shall use all reasonable efforts to resolve the

dispute; provided, however, if the resolution of the good

faith dispute results in Shipper or Transporter owing the

other an additional amount, then the provisions of Section

14.3 shall apply from the date payment was due, pursuant to

Section 14.2, until payment of the additional amount is

made. The provisions of Section 14.6 shall not apply in

the case of a good faith dispute.


14.6 Prepayment in the Event of Default:


Upon default in payment for a period in excess of twenty

(20) days, Transporter may, upon thirty (30) days prior

written notice to Shipper, require as a condition to the

continuance or recommencement of transportation services a

deposit or other acceptable credit arrangement in an amount

equal to not more than three estimated maximum monthly

bills for transportation services.


14.7 Prior Period Adjustments:


Prior period adjustment time limits shall be 6 months from

the date of the initial transportation invoice and 7 months

from date of initial sales invoice with a 3 month rebuttal

period, excluding government required rate changes. This

standard shall not apply in the case of deliberate omission

or misrepresentation or mutual mistake of fact. Parties'

other statutory or contractual rights shall not otherwise

be diminished by this standard.