Gulf Crossing Pipeline Company LLC

Original Volume No. 1

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Effective Date: 12/20/2008, Docket: RP09-61-000, Status: Effective

Original Sheet No. 1200 Original Sheet No. 1200

 

GENERAL TERMS AND CONDITIONS

Section 19

 

 

19. PENALTIES

 

19.1 OFO Penalty - In the event Gulf Crossing issues an Operational

Flow Order pursuant to Section 18.4 of these General Terms and

Conditions, and Customer tenders and/or takes quantities in

violation of such Operational Flow Order by more than 3%, Gulf

Crossing shall assess against Customer, on a daily basis, a

penalty, as provided below based upon the Penalty Price per

Dekatherm which is tendered or taken by Customer in violation of

such Operational Flow Order. The "Penalty Price" as used herein

is the price as published in Gas Daily, Daily Price Survey, under

the headings Mississippi-Alabama, Transco, Zone 4 (Midpoint), for

the Day in which the applicable penalty was in effect or the

average of the price in effect for the Day immediately before and

the Day immediately after any Day or Days where Penalty Price is

not published. Should this publication cease to exist in its

current form, then Gulf Crossing will choose a comparable

published price for use.

 

(a) In the event Gulf Crossing issues an OFO pursuant to

Section 18.4 of these General Terms and Conditions and a

Customer takes quantities in violation of such OFO, Gulf

Crossing shall assess against Customer, on a daily basis,

the applicable penalty as follows:

 

(i) A penalty of three (3) times the Penalty Price per

Dekatherm for tenders and/or takes in violation of an

OFO greater than 3% but less than or equal to 5% of

scheduled quantities.

 

(ii) A penalty of five (5) times the Penalty Price per

Dekatherm for tenders and/or takes in violation of an

OFO greater than 5% of scheduled quantities.