Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 04/01/1997, Docket: RP97- 4-005, Status: Effective

Sub Second Revised Sheet No. 286 Sub Second Revised Sheet No. 286 : Superseded

Superseding: First Revised Sheet No. 286




(b) Unpaid and Disputed Bills


Should Shipper fail to pay part or all of the amount

of any such bill, interest thereon shall accrue at an

average prime interest rate computed in a manner

consistent with Section 154.501(d) of the

Commission's Regulations, from the Due Date until

date of receipt of payment by Panhandle. If such

failure to pay continues 30 Days after payment is

due, Panhandle, in addition to any other remedy it

may have, may suspend further service to Shipper

until such amount is paid after Panhandle provides

Shipper with 20 Days prior written notice; provided,

however, that if Shipper in good faith disputes in

writing the amount of any such bill or parts thereof

and pays to Panhandle such amounts as it concedes to

be correct, and at any time thereafter within 30 Days

of demand made by Panhandle shall furnish a good and

sufficient surety bond guaranteeing payment to

Panhandle 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 Panhandle shall not be

entitled to suspend further service unless and until

default be made in the conditions of such bond. If

resolution of the dispute is in favor of Shipper and

the Shipper furnished a surety bond instead of paying

the disputed amount, then Panhandle shall reimburse

Shipper for the cost of securing that surety bond.

No payment by Shipper of the amount of a disputed

bill shall prejudice the right of Shipper to claim an

adjustment of the disputed bill.


17.3 In the event that an error is discovered in the invoiced

amount hereunder, such error shall be adjusted within 30

Days of the determination thereof, provided that claim

therefor shall have been made in writing.


(a) Measurement data corrections should be processed

within 6 months of the production month with a 3

month rebuttal period.


(b) The time limitation for disputes of allocations

should be 6 months from the date of the initial

month-end allocation with a 3-month rebuttal period.