Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 08/01/2008, Docket: RP07-174-005, Status: Effective

Seventh Revised Sheet No. 218 Seventh Revised Sheet No. 218

Superseding: Sixth Revised Sheet No. 218

 

GENERAL TERMS AND CONDITIONS (Continued)

 

 

19.9 Penalty Crediting Mechanism.

 

(a) The purpose of this provision is to provide the mechanism 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 PAL Rate Schedule Section 5(b) and

IMS Rate Schedule Section 5(c), and (B) overrun charges imposed pursuant to the terms of any of Transporter's

Rate Schedules.

 

(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

provisions of this Tariff, under all of Transporter's Rate Schedules, except the AS-Gulf and IPP-Gulf Rate

Schedules.

 

(c) At the end of the contract year, Transporter shall calculate the amount of Penalty Revenues for

each month of the preceding contract year. Transporter will include interest on the Penalty Revenues balance

at the rate specified in the Commission's Regulations at Section 154.501(d)(1). Transporter shall allocate

such Penalty Revenues for that month to the Non-Penalized Shippers based on their actual throughput for that

month and in the case of service under Rate Schedule PAL, Transporter shall allocate such Penalty Revenues

based on Non-Penalized Shipper's PAL service agreement account balance for that month. Transporter shall

credit the bills of Non-Penalized Shippers that are the original capacity holders (and not Assignees 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.

 

(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). The report will (1) identify Transporter's

incremental out-of-pocket costs that were caused by Shipper misconduct and the Shipper misconduct that caused

the costs; (2) account separately for these costs; and (3) provide supporting documentation of the costs and

the Shipper misconduct that caused them.

 

19.10 Critical Day Requirement for Penalties.

 

(a) A "Critical Day" for transportation will be declared by Transporter whenever Transporter, in

Transporter's reasonable discretion, determines (based on criteria such as weather forecasts, line pack,

storage conditions, pipeline pressures, horsepower availability, system supply and demand, and other

operational circumstances) that operating conditions are such that Transporter faces a threat to its system

integrity and/or to Transporter's ability to meet its firm service obligations. With the exception of (1)

Failure to Interrupt penalties imposed pursuant to Sections 16 and 19 of the General Terms And Conditions

and/or the Failure to Interrupt provisions of individual rate schedules, (2) OFO penalties imposed pursuant to

the provisions of Sections 17 and 19 of the General Terms And Conditions and/or the OFO provisions of

individual rate schedules, (3) Delivery Point Scheduling Penalties imposed pursuant to Section 19.4 of the

General Terms and Conditions, and (4) Cumulative Month Imbalance Cash-Out pursuant to Section 19.5 of the

General Terms and Conditions, Transporter will not impose penalties under this Section 19 and under any rate

schedule unless a Critical Day, as defined above, has been declared and is in effect on Transporter's system.

For penalties ascribed for conduct that occurs over a monthly as opposed to a daily period of time, these

monthly penalties will be imposed only if Transporter has declared a Critical Day on any day occurring in that

monthly period.