Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 04/01/1997, Docket: RP97- 3-004, Status: Effective

Sub Second Revised Sheet No. 595 Sub Second Revised Sheet No. 595 : Effective

Superseding: First Revised Sheet No. 595




10.6 Disputed Bills


Should Customer fail to pay part or all of the amount of any bill for

service provided when such amount is due, Pipeline may charge interest on

the unpaid portion of the bill computed from such Due Date until the date

of payment at the same rate of interest and in the same manner as

prescribed for pipeline refunds as set forth in Section 154.501(d) of the

Commission's Regulations under the Natural Gas Act. Customer shall pay the

portion of the bill not in dispute and shall provide written documentation

identifying the basis for the dispute. If such failure to pay continues

thirty (30) days after payment is due, Pipeline, in addition to any other

remedy it may have hereunder, may, after any necessary authorization by

regulatory bodies having jurisdiction, suspend further service to Customer

until such amount is paid; provided, however, that if Customer in good

faith shall dispute the amount of any such bill or parts thereof and shall

pay to Pipeline such amounts as it concedes to be correct, and at any time

thereafter within thirty (30) days of demand made by Pipeline shall furnish

a good and sufficient surety bond guaranteeing payment to Pipeline 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 Pipeline shall not be entitled to suspend further service

unless and until default be made in the conditions of such bond. No

payment by Customer of the amount of a disputed bill shall prejudice the

right of Customer to claim an adjustment of the disputed bill.


10.7 Extension of Due Date


If presentation of bills by Pipeline is delayed after the tenth day of

the month, then the Due Date shall be extended accordingly unless Customer

is responsible for such delay.


10.8 Billing Errors


In the event an error is discovered in the invoiced amount hereunder,

such error shall be adjusted within thirty (30) days of the determination

thereof, provided that claim therefor shall have been made in writing.


(A) Measurement data corrections shall be processed within six (6)

months of the production month with a three-month rebuttal



(B) The time limitation for disputes of allocations shall be six (6)

months from the date of the initial month-end allocation with a

three-month rebuttal period.


(C) Prior period adjustment time limits shall be six (6) months from

the date of the initial transportation invoice with a three-month

rebuttal period, excluding government-required rate changes.


These three standards shall not apply in the case of deliberate

omission or misrepresentation or mutual mistake of fact. Parties' other

statutory or contractual rights shall not otherwise be diminished by these

standards. If an adjustment is made pursuant to Section 7.8 of the General

Terms and Conditions, the adjustment will be made in the next bill

following the adjustment and in each bill thereafter as necessary to

reflect the total amount of the adjustment.