High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 04/07/1999, Docket: GT99- 17-000, Status: Effective

Original Sheet No. 147 Original Sheet No. 147 : Effective








17.12(g) Billing. HIOS shall bill the Replacement Shipper

the rate specified in the Transportation Agreement

and any other applicable charges and such

Replacement Shipper shall pay the billed amounts

directly to HIOS. Further, the Replacement

Shipper who has acquired capacity on a volumetric

reservation charge shall be billed the daily

reservation charge plus the commodity rate and all

applicable surcharges times the volumes actually

transported. Releasing Shipper shall be billed

the reservation charge and reservation surcharge,

if any, associated with the released capacity

pursuant to its contract, with a concurrent

conditional credit for payment of the reservation

charge and reservation surcharge due from the

Replacement Shipper. This bill shall include an

itemization of credits and adjustments associated

with each release transaction. Releasing Shipper

shall also be billed a marketing fee, if

applicable, pursuant to the provisions of

subsection 17.10 of this Section 17. A

Replacement Shipper who re-releases acquired

capacity shall pay to HIOS a marketing fee, if



If a Replacement Shipper does not make payment to

HIOS of the reservation charge and reservation

surcharge, if any, due as set forth in Section 10

the General Terms and Conditions, HIOS shall

notify the Releasing Shipper of the amount due,

including all applicable late charges authorized

by Section 10 of the General Terms and Conditions

and such amount shall be paid by the Releasing

Shipper. In addition, Releasing Shipper may

terminate the release of capacity to a Replacement

Shipper if such Replacement Shipper fails