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North Baja Pipeline, LLC
FERC Gas Tariff
Original Volume No. 1

Sixth Revised Sheet No. 116
Superseding
Fifth Revised Sheet No. 116

                   GENERAL TERMS AND CONDITIONS OF SERVICE
                                 (Continued)

7.  PAYMENT (Continued)

    7.3   Remedies for Failure to Pay: (Continued)

          However, if Shipper, in good faith, disputes the amount of any bill 
          or part thereof and 1) promptly pays to Transporter the undisputed 
          amount, and 2) furnishes to Transporter a good and sufficient letter 
          of credit in an amount and with surety satisfactory to Transporter, 
          or provides other assurance acceptable to Transporter guaranteeing 
          payment to Transporter of the amount ultimately found due upon the 
          bill after a final determination that may be reached either by 
          agreement or by judgment of the courts, as may be the case, then 
          Transporter shall not be entitled to automatically suspend or 
          terminate service under the Transportation Service Agreement(s) 
          unless and until a default is made in the conditions of the letter 
          of credit or other assurance; provided further that should Shipper 
          prevail on the dispute, Transporter shall reimburse Shipper up to 
          the reasonable and customary costs of the letter of credit or other 
          assurance provided.

    7.4   Late Billing:  If presentation of a bill by NBP is delayed after the 
          date specified in Paragraph 6.1 hereof, then the time for payment 
          shall be extended correspondingly unless Shipper is responsible for 
          such delay.

     7.5   Adjustment of Billing Error:  In accordance with NAESB Standard 
           3.3.15, Version 1.8, prior period adjustment time limits should be 
           six (6) months from the date of the initial transportation invoice 
           and seven (7) months from date of initial sales invoice with a 
           three-month rebuttal period, excluding government-required rate 
           changes.  This standard 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 this standard.

     7.6   Reservation Charge Credit (Force Majeure): As used in this 
           Paragraph 7.6, Firm Daily Volume shall mean the volume of gas which 
           NBP is obligated to deliver on a firm basis at Shipper's firm 
           delivery point(s) on a Gas Day, based on confirmable nominations 
           for firm service within Shipper's Maximum Daily Quantity.  If, due 
           to an event of force majeure, Transporter is unable to deliver any 
           portion of Shipper's Firm Daily Volume for a period greater than 
           ten (10) consecutive days, then for each day beyond ten (10) days 
           that Transporter so fails to provide service the applicable 


                                                                  (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: June 1, 2009                       Effective on: August 1, 2009
Filed to comply with order of the Federal Energy Regulatory Commission, Docket 
No. RM96-1-029, issued February 14, 2009
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