Columbia Gas Transmission LLC
Third Revised Volume No. 1
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Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective
Original Sheet No. 351 Original Sheet No. 351
GENERAL TERMS AND CONDITIONS (Cont'd)
(d) Transporter may waive its right to collect all or any portion of the penalties assessed against
Shipper, provided that any such waiver is granted in a nondiscriminatory manner.
(e) To the extent that any imbalance or scheduling variance directly results from Shipper's
reliance on inaccurate data from Transporter, or is otherwise caused by Transporter, no penalty will be
assessed for that portion of the imbalance or scheduling variance shown by Shipper to be attributable to such
19.7 Penalty Crediting Mechanism.
(a) The purpose of this provision is to provide the mechanism (except the mechanism currently
existing at Section 16.5(e) and Section 32.5 of the General Terms and Conditions) by which Transporter shall
credit any "Penalty Revenues," as defined herein, to "Non-Penalized Shippers."
(b) For purposes of this Section, the following definitions shall apply:
(i) The term "Penalty Revenues" shall mean penalty amounts assessed and actually
collected, net of Transporter's costs, during each month of a contract year (November 1 to October 31)
pursuant to the penalty provisions of this Tariff; exclusive of (A) Transporter's actual gas,
transportation and retainage costs for the replenishment of gas quantities with respect to NTS Rate
Schedule Section 6(b), NTS-S Rate Schedule Section 6(b), SIT Rate Schedule Section 3(d), PAL Rate
Schedule Section 5(b), and Section 9.7(b) of the General Terms and Conditions; and (B) overrun
transportation and storage revenues imposed pursuant to the terms of any of Transporter's Rate
(ii) The term "Non-Penalized Shippers" shall mean Shippers, other than Shippers that were
assessed penalties during any month of a contract year (November 1 to October 31) pursuant to the
penalty provision of this Tariff, under Transporter's FTS, NTS, NTS-S, TPS, SST, ITS, GTS, and OPT Rate
(c) At the end of the contract year, Transporter shall calculate the amount of Penalty Revenues.
Transporter will include interest on the Penalty Revenues balance at the rate specified in the Commission's
Regulations at Section 154.501(d)(1). For each month of the preceding contract year, Transporter shall
allocate Penalty Revenues for that month to the Non-Penalized Shippers based on their actual monthly
throughput for that month under the Non-Penalized Shippers' FTS, NTS, NTS-S, TPS, SST, ITS, GTS and OPT
Service Agreements. Transporter shall credit the bills of Non-Penalized Shippers that are the original
capacity holders (and not Replacement Shippers under Section 14 (Release and Assignment of Service Rights) of
the General Terms and Conditions) for such allocated amounts within 60 days of the end of the contract year.
To the extent that there are no Non-Penalized Shippers in a month in which there are Penalty Revenues, the
Penalty Revenues will be carried forward to the next succeeding month and will allocated to Non-Penalized
Shippers in that month.
(d) Transporter will file a report within 60 days of the close of the contract year showing the
Penalty Revenues, the costs netted against the Penalty Revenues, and the resulting Penalty Revenue credits for
each month of the contract year (November 1 to October 31).