North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 08/01/2009, Docket: RP09-689-000, Status: Effective

Sixth Revised Sheet No. 116 Sixth Revised Sheet No. 116

Superseding: Fifth Revised Sheet No. 116





7. PAYMENT (Continued)


7.3 Remedies for Failure to Pay: (Continued)


However, if Shipper, in good faith, disputes the amount of any bill

or part thereof and 1) promptly pays to Transporter the undisputed

amount, and 2) furnishes to Transporter a good and sufficient letter

of credit in an amount and with surety satisfactory to Transporter,

or provides other assurance acceptable to Transporter guaranteeing

payment to Transporter of the amount ultimately found due upon the

bill after a final determination that may be reached either by

agreement or by judgment of the courts, as may be the case, then

Transporter shall not be entitled to automatically suspend or

terminate service under the Transportation Service Agreement(s)

unless and until a default is made in the conditions of the letter

of credit or other assurance; provided further that should Shipper

prevail on the dispute, Transporter shall reimburse Shipper up to

the reasonable and customary costs of the letter of credit or other

assurance provided.


7.4 Late Billing: If presentation of a bill by NBP is delayed after the

date specified in Paragraph 6.1 hereof, then the time for payment

shall be extended correspondingly unless Shipper is responsible for

such delay.


7.5 Adjustment of Billing Error: In accordance with NAESB Standard

3.3.15, Version 1.8, prior period adjustment time limits should be

six (6) months from the date of the initial transportation invoice

and seven (7) months from date of initial sales invoice with a

three-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.


7.6 Reservation Charge Credit (Force Majeure): As used in this

Paragraph 7.6, Firm Daily Volume shall mean the volume of gas which

NBP is obligated to deliver on a firm basis at Shipper's firm

delivery point(s) on a Gas Day, based on confirmable nominations

for firm service within Shipper's Maximum Daily Quantity. If, due

to an event of force majeure, Transporter is unable to deliver any

portion of Shipper's Firm Daily Volume for a period greater than

ten (10) consecutive days, then for each day beyond ten (10) days

that Transporter so fails to provide service the applicable