Cheniere Creole Trail Pipeline, L.P.

Original Volume No. 1

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Effective Date: 04/28/2008, Docket: RP08-137-000, Status: Effective

Original Sheet No. 163 Original Sheet No. 163 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

G. Shipper Penalties for Non-compliance with an OFO

 

(i) Where a Shipper is required by Transporter under an OFO to nominate and

schedule certain gas receipts and/or deliveries in order to comply with the

OFO, an OFO penalty will only be assessed if the Shipper had a reasonable

opportunity to remedy the circumstance causing the OFO and failed to do so.

Such reasonable opportunities include the following:

 

(a) nominate gas supplies and/or deliveries which, once confirmed and

scheduled, would remedy the circumstance causing the OFO.

 

(b) take other appropriate action which remedies the circumstance causing

the OFO.

 

(ii) OFO penalties shall be accounted for and refunded annually to all

Shippers not penalized under this OFO procedure based on the ratio of the

quantity of gas each Shipper transports in Transporter's pipeline system to

the total quantity of gas transported by all shippers in Transporter's

pipeline system.

 

(iii) Failure to comply in a timely fashion with an OFO shall subject a

responsible Shipper to the following penalties.

 

(a) an immediate interruption of all or a portion of Shipper's service and

 

(b) an OFO penalty of $25 multiplied by the quantities of gas transported by

a Shipper in excess of the quantity allowed under the OFO.

 

The payment of unauthorized overrun penalties does not create the right to

exceed the gas quantities allowed under an OFO.