Bluewater Gas Storage, LLC

Original Volume No. 1

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Effective Date: 12/01/2006, Docket: CP06-351-001, Status: Effective

Original Sheet No. 133 Original Sheet No. 133 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(h) Termination of an Action Alert or OFO: BLUEWATER shall lift

any effective Action Alert or OFO promptly upon the cessation of

operating conditions that caused the relevant system problem. After

BLUEWATER has lifted the Action Alert or the OFO, BLUEWATER shall

post a notice on its Internet Web Site specifying the factors that

caused the Action Alert or OFO to be issued and then lifted, to the

extent such factors are known. BLUEWATER shall also provide such

notification via e-mail communication to those Customers who have

submitted a request, and provided e-mail address information for at

least one contact person, via BLUEWATER's Internet Web Site to

receive e-mail notification of Critical Notices issued by BLUEWATER.

 

(i) Penalties: All quantities tendered to BLUEWATER

and/or taken by Customer on a daily basis in violation of an Action

Alert or OFO shall constitute unauthorized receipts or deliveries

for which the applicable Action Alert or OFO penalty charge stated

below shall be assessed.

 

(l) Action Alert penalty charge for each Dekatherm of

Gas by which Customer deviated from the requirements of

the Action Alert shall be equal to an Action Alert

Index Price, calculated as 110% of the applicable daily

Gas Daily posting for the MichCon City Gate Price for

the Day on which the deviation occurred, multiplied by

the quantity by which the Customer deviated from the

requirements of the Action Alert.

 

(2) OFO penalty charge for each Dekatherm of Gas by

which Customer deviated from the requirements of the

OFO shall be equal to an OFO Index Price, calculated as

three (3) times the applicable daily Gas Daily posting

for the MichCon City Gate Price for the Day on which

the deviation occurred, multiplied by the quantity by

which the Customer deviated from the requirements of

the OFO.

 

Any penalty revenue collected by BLUEWATER pursuant to this Section

5.5(i) shall be credited to those firm and Interruptible Customers

that did not incur Action Alert or OFO penalties pursuant to this

Section 5.5(i) in the Month for which Action Alert or OFO penalty

revenues were received ("Non-Offending Customers"), based on the

ratio of the total charges paid during that Month by the Non-

Offending Customer to the sum of the total charges paid during that

Month by all Non-Offending Customers. Such credits shall be

calculated for each Month of the twelve (12) Month period ending

July 31 of each year, and will be included on the Non-Offending

Customer's invoice for the Month following the date of the final

Commission order approving BLUEWATER's penalty disbursement report;

provided, however, that BLUEWATER will calculate and include such

credits on Non-Offending Customer's invoices for a period shorter

than twelve Months in the event and to the extent that the total

accumulated amount of Action Alert or OFO penalty revenue collected

pursuant to this Section 5.5(i) by BLUEWATER as of the end of any

Month exceeds $1,000,000. BLUEWATER will file with the Commission a

penalty disbursement report within sixty days of July 31 or sixty

days after the end of the Month for which revenue collected exceeds

$1,000,000. Any penalty revenue credited to Non-Offending Customers

pursuant to this Section shall include interest calculated in

accordance with Section 154.501(d) of the Commission's regulations.