Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-304-001, Status: Effective

First Revised Sheet No. 2816 First Revised Sheet No. 2816

Superseding: Original Sheet No. 2816



Section 16




16.6 Billing and Credits


(a) The Releasing Customer shall receive a credit for the charges billed to the

Replacement Customer representing the reservation charge at the same time

the Replacement Customer is invoiced for such charges. Funds received from

the Replacement Customer will be credited against the Releasing Customer's

Demand Charges and any surcharges thereon, before funds are credited against

any other charges owed by the Replacement Customer.


(b) In the event that the Replacement Customer does not pay Pipeline the amounts

invoiced within 30 days of the original invoice date, the Releasing

Customer's previously granted credit will be reversed. If a credit has to

be reversed, interest will be charged to the Releasing Customer on the

amount of the credit received from the date due until paid by the Releasing



(c) Any contract with a Replacement Customer who is delinquent 30 days or more

from the original invoice date is subject to the remedies for non-payment as

provided in Section 15 of the General Terms and Conditions herein.


(d) Pipeline will notify Releasing Customer within 5 business days after payment

is due if a Replacement Customer is delinquent.




16.7 Conditions Applicable to Permanent Release of Capacity


(a) If capacity is released under this Section 16 on a permanent basis, the

Releasing Customer's transportation service agreement and any liabilities,

thereunder, including the payment of demand charges, will terminate upon

the effective date of the Replacement Customer's transportation service

agreement, if the Replacement Customer agrees to pay the maximum rate for

the entire volume and term reserved under the Releasing Customer's

contract, unless otherwise agreed by the Pipeline.