Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-514-000, Status: Effective

Third Revised Sheet No. 251B Third Revised Sheet No. 251B

Superseding: Second Revised Sheet No. 251B

 

GENERAL TERMS AND CONDITIONS

 

10. OPERATIONAL FLOW ORDERS (Cont'd)

 

(c) On any day during an OFO period, a Shipper under Rate

Schedule(s) TSS, STS, FTS, SFT, and/or FSS may be subjected to

OFO penalties by (1) exceeding any of the production area or

market area MSQs, MDTQs, MDIQs, or MDWQs, reduced if necessary

to reflect such items as capacity release, or (2) depleting its

available gas in storage. Any volumes taken in excess of the

production area or market area MDTQs, MDIQs, or MDWQs, or any

volumes stored in excess of their MSQ, shall be considered

Unauthorized Capacity Overrun and shall be subject to OFO

penalties equal to 365 times the maximum daily reservation rate

for the applicable area per Dth; provided, however, that a 3%

tolerance in excess of MDTQ shall be permitted. For any

Receiving Party who is also a Shipper under this paragraph, any

quantities taken in excess of MDQ at any delivery point will be

credited to any quantities taken in excess of that party's MDTQ

in total during the same day. Penalty revenues resulting from

MSQ, MDTQ, MDIQ, or MDWQ Unauthorized Capacity Overruns will be

credited to those Shippers who did not incur Unauthorized

Capacity Overrun penalties on that day. Penalty revenue

associated with MDTQ overruns will be credited to Shippers who

did not overrun their MDTQ on the same respective day and

penalty revenue associated with MDWQ, MDIQ, or MSQ overruns

will be credited to Shippers who did not overrun their MDWQ,

MDIQ, or MSQ on the same respective day. Credits will be pro

rata based on MSQ, MDTQ, MDIQ, and MDWQ, respectively. Payment

of a penalty under this paragraph shall not entitle Shipper to

any future increased MSQ, MDTQ, MDIQ, or MDWQ.

 

Storage withdrawals made after a Shipper's storage account(s)

is/are depleted shall be subject to OFO penalties equal to:

 

(i) for standard OFO periods, the greater of $5 or 2.5

times the average Gas Daily Index for Southern Star for

each day the OFO is in effect for each Dth of storage

withdrawal;

 

(ii) for emergency OFO periods, the greater of $10 or 5

times the average Gas Daily Index for Southern Star for

each day the OFO is in effect for each Dth of storage

withdrawal;

 

Daily penalty revenue related to storage depletion will be

credited to those Shippers whose storage account was not

depleted on that day.