Gulf States Transmission Corporation

Original Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-174-001, Status: Effective

Substitute First Revised Sheet No. 47 Substitute First Revised Sheet No. 47 : Effective

Superseding: First Revised Sheet No. 47





7. PAYMENTS (Continued)


(b) Failure to Pay


Should Shipper fail to pay all of the amount of any invoice for

natural gas delivered as herein provided when such amount is due, interest on

the unpaid portion of such amount shall accrue at the rate equal to the

interest rate established from time to time by the FERC pursuant to Section

154.67(c)(2)(iii)(A) of its Regulations.


Such interest shall accrue on unpaid amounts beginning on the payment

due date of Transporter's statement and shall terminate when such statement is



(c) Prior Period Adjustments


Prior period adjustment time limits should 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.

Prior period adjustments are reported by production date, but they do

not have to be invoiced separately by production month - nor is each

production month a separate paper invoice page.

Indicate paid amount on prior period adjustments on the statement of



(d) Errors


In the event an error is discovered in the amount invoiced in any

statement rendered by Transporter, such error shall be adjusted within 30 days

of the determination thereof; provided that claim therefore shall have been

made within 60 days from the date of discovery of such errors but in any event

within 12 months from the date of payment.

If invoice is in dispute, pay portion not in dispute and provide

documentation identifying basis for the dispute.


(e) Delayed Invoices


If rendition of an invoice by Transporter to Shipper is delayed

beyond the date specified in Section 6 of these General Terms and Conditions,

Shipper shall pay such invoice within 10 days after rendition thereof.