Venice Gathering System, L. L. C.

Original Volume No. 1

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Effective Date: 01/01/1998, Docket: CP97-533-002, Status: Effective

Original Sheet No. 142 Original Sheet No. 142 : Effective






13.11 Crediting of Revenue for Temporary Releases


The Replacement Shipper shall pay a Reservation Rate

and a Usage Rate for use of the released capacity. A

Replacement Shipper will be billed by VGS and shall make

payments to VGS in accordance with the terms of the Form of

Service Agreement for Firm Transportation Service and the

applicable Confirmation Letter. For capacity releases other

than a permanent release, VGS shall bill the Releasing

Shipper its reservation charge reflecting a credit of the

reservation charge billed to the Replacement Shipper. The

Releasing Shipper will receive credit for all revenue

generated by a temporary Replacement Shipper's payment of

reservation charges for the released capacity. In the event

the Releasing Shipper receives transportation service at a

discounted rate that is less than the rate paid by the

Replacement Shipper, the Releasing Shipper, at its option,

will be entitled to receive an additional credit or a refund

of the difference. Notwithstanding the above, the Releasing

Shipper shall remain liable for the reservation charge and

VGS will bill the Releasing Shipper for any reservation

charges not paid by the Replacement Shipper and any

associated interest on late payments during the next billing

cycle. The Replacement Shipper shall be obligated to pay

VGS the Usage Rate negotiated between the Releasing Shipper

and Replacement Shipper, all associated volumetric

surcharges applicable to the quantities VGS transports under

the Replacement Shipper's Firm Service Agreement, and any

penalties assessed in connection with the Replacement

Shipper's use of the released capacity. VGS will retain the

minimum Usage Rate, associated volumetric surcharges, and

any penalty revenues.