El Paso Natural Gas Company

First Revised Volume No. 1-A

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Effective Date: 12/03/1992, Docket: RP92-185-001, Status: Effective

Substitute First Revised Sheet No. 214 Substitute First Revised Sheet No. 214 : Superseded

Superseding: Original Sheet No. 214






6.4 Failure to Pay Bills - Should Shipper fail to pay all of the

amount of any bill for gas delivered under the executed

Transportation Service Agreement when such amount is due, as

herein provided, Shipper shall pay El Paso interest on the

unpaid balance that shall accrue on each calendar day from the

twenty-fifth (25th) day of the month during which payment was

due at a rate equal to two percent (2%) above the then

effective prime commercial lending rate per annum announced

from time to time by The Chase Manhattan Bank (N.A.) at its

principal office in New York City, provided that for any

period that such interest exceeds any applicable maximum rate

permitted by law, the interest shall equal said applicable

maximum rate. The interest provided for by this Section 6.4

shall be compounded monthly. Unless otherwise mutually agreed

between the parties, if either principal or interest are due,

any payments thereafter received shall first be applied to the

interest due, then to the previously outstanding principal due

and, lastly, to the most current principal due. Subject to

requirements of regulatory bodies having jurisdiction and

without prejudice to any other rights and remedies available

to El Paso under the law and the executed Transportation

Service Agreement, El Paso shall have the right to suspend

transportation service without obtaining additional prior

approval from the Commission if any amount billed to Shipper

remains unpaid for more than thirty (30) days after the due

date thereof; provided, however, prior to suspension El Paso

shall follow these notification procedures.


(a) First Notice: On or about ten (10) days after the due

date of any payment, El Paso shall contact Shipper by

telephone or other routine communication means to advise

that unpaid bills may lead to suspension of

transportation service when more than thirty (30) days

past due;


(b) Second Notice: On or about twenty (20) days after the

due date of any payment, El Paso shall notify Shipper by

written correspondence to advise that continued failure

to pay bills can lead to suspension of transportation

service when the bill becomes more than thirty (30) days

past due;