Oktex Pipeline Company

Original Volume No. 1

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Effective Date: 10/01/2002, Docket: RP02-472-000, Status: Effective

Sixth Revised Sheet No. 27 Sixth Revised Sheet No. 27 : Effective

Superseding: Fifth Revised Sheet No. 27

4. Remedies for Nonpayment. Should Shipper fail to pay any or all of the

amount of any bill as herein provided when such amount is due, Shipper shall

pay a Charge for Late Payment which shall be included by Transporter on the

next regular monthly bill rendered to Shipper. Such Charge for Late Payment

shall be determined by multiplying (a) the unpaid portion of the bill by (b)

the ratio of the number of days from the due date to the date of actual

payment to 365 by (c) the applicable rate of interest calculated in accordance

with Section 154.67 of the Commission's regulations. If such failure to pay

continues for thirty (30) days after payment is due, Transporter, in addition

to any other remedy it may have under the Gas Transportation Contract, may,

after any required application to and authorization by the Federal Energy

Regulatory Commission, suspend further transportation of gas until such amount

is paid, and if such default continues for thirty (30) additional days,

Transporter may thereafter, in addition to any other remedy it may have under

the Gas Transportation Contract, terminate said contract in accordance with

the provisions of Section 4 of Article XII hereof, provided, however, that if

Shipper in good faith shall dispute the amount of any bill or part thereof and

shall pay Transporter such amount as it concedes to be correct and at any time

within thirty (30) days after a demand made by Transporter shall furnish good

and sufficient surety bond, guaranteeing payment to Transporter of the amount

ultimately found due upon such bills after a final determination which may be

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

then Transporter shall not, with respect to such non-payment, be entitled to

seek to suspend further delivery of gas unless and until default be made in

the conditions of such bond.


5. Adjustment of Underpayment, Overpayment or Error in Billing. If it

shall be found that at any time or times Shipper has been overcharged or

undercharged in any form whatsoever under the provisions of the Gas

Transportation Contract and Shipper shall have actually paid the bills

containing such overcharge or undercharge, then within thirty (30) days after

the final determination thereof, Transporter shall refund the amount of any

such overcharge, and Shipper shall pay the amount of any such undercharge,

provided, however, that interest calculated in accord with Section 4 of this

Article VII shall apply to any undercharge not paid within thirty (30) days

from the date of Transporter's notification to Shipper of the amount of the

undercharge. In the event an error is discovered in the amount billed in any

statement rendered by Transporter, such error shall be adjusted within thirty

(30) days of the final determination thereof provided that claim therefor

shall have been made within sixty (60) days from the date of discovery of such

error but, in any event, within twenty-four (24) months from the date of



6. Right of Examination. Both Transporter and Shipper shall have the

right to examine at any reasonable time the books, records and charges of the

other to the extent necessary to verify the accuracy of any statement, chart

or computation made under or pursuant to the provision of this Tariff or the

Gas Transportation Contract between Transporter and Shipper.


7. Invoicing Standards. Refer to NAESB Standards 3.3.2, 3.3.4

through 3.3.13, 3.3.26, 3.4.1through 3.4.4.