Mississippi Canyon Gas Pipeline, LLC

First Revised Volume No. 1

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Effective Date: 12/20/1998, Docket: CP96-159-006, Status: Effective

Original Sheet No.137 Original Sheet No.137 : Effective




19.7 Billing and Payment - (cont'd)


(c) An ACQUIRING SHIPPER receiving capacity released from an FT-2

TSA for use under Rate Schedule FT-1 shall be billed by

Transporter and shall make payments to Transporter in accordance

with the terms of its executed FT-1 TSA or a Temporary Release

Agreement. On the RELEASING SHIPPER's bill for a month in which

it released capacity hereunder on a temporary basis, Transporter

shall bill the RELEASING SHIPPER subject to the terms of the

RELEASING SHIPPER's FT-2 TSA (i) a charge based on, for billing

purposes only, the RELEASING SHIPPER's MDQ deemed equal to the

unreleased capacity, (ii) a charge computed pursuant to

subsection 5a(ii) of Rate Schedule FT-2 with the RELEASING

SHIPPER's MDQ equal to 100% of the released capacity, and (iii)

a credit equal to 100% of the released capacity multiplied by

the RELEASING SHIPPER's Specific Heating Value, multiplied by

the number of days in the month and multiplied by the lower of

the RELEASING SHIPPER's rate under its FT-2 TSA or the ACQUIRING

SHIPPER's rate under its Temporary Release Agreement; provided,

however, that in the event the ACQUIRING SHIPPER fails to pay

Transporter for any part of the amount credited to the RELEASING

SHIPPER's bill, Transporter reserves the right to reverse the

credit on the RELEASING SHIPPER's bill in a later month up to

the unpaid amount plus interest thereon calculated pursuant to

Section 14.3. If the ACQUIRING SHIPPER fails to pay its

reservation charges pursuant to the provisions of Section 14,

the RELEASING SHIPPER shall have the right to recall its

capacity by notifying the ACQUIRING SHIPPER and Transporter

of such recall pursuant to the provisions of Section 19.4.

All credits to the RELEASING SHIPPER's bill pursuant to this

subsection shall be final and nonreversible upon Transporter's

receipt of full payment therefor from the ACQUIRING SHIPPER.