Energy West Development, Inc.

Original Volume No. 1

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Effective Date: 06/11/2010, Docket: RP10-732-000, Status: Effective

Second Revised Sheet No. 75 Second Revised Sheet No. 75

Superseding: First Revised Sheet No. 75

 

General Terms and Conditions

 

34.8 Failure to Comply with OFO. If Shipper (or Shipper’s Gas seller, supplier, Agent,

or the producer and/or operator as the circumstances may require) fails to comply

with the terms of an OFO, for any reason other than force majeure on an upstream

pipeline, such Shipper shall be: (a) liable for any damages including, but not

limited to direct, consequential, exemplary or punitive damages incurred by

Transporter or any other affected party as a result of such failure; and (b)

subject to a penalty of twenty-five dollars ($25.00) for each Dekatherm of Gas

associated with the quantity of Gas that does not comply with such OFO.

Notwithstanding anything to the contrary in this Section 34.8, if Shipper is

required to make a nomination pursuant to an OFO, unless critical circumstances

dictate otherwise, no damages and/or penalties will be assessed unless Shipper is

given the opportunity to correct the circumstances giving rise to the OFO.

 

34.9 Reimbursement. If Transporter receives Gas pursuant to an OFO issued under Section

34.4 of the General Terms and Conditions of this Tariff, then Transporter shall pay

the full commodity rate applicable to the primary Gas purchaser, whether higher or

lower than Transporter’s Cashout price. If Transporter receives Gas pursuant to an

OFO issued under Sections 34.5 and 34.6 of the General Terms and Conditions of this

Tariff, Transporter shall pay the recipient of the OFO for such quantity of Gas at

the applicable contract price.

 

Notwithstanding the foregoing, any party supplying Gas to Transporter under

Sections 34.4, 34.5, and 34.6 of the General Terms and Conditions of this Tariff

shall have the right to receive such imbalance in kind, delivered to such recipient

by no later than the Month subsequent to the Month in which the OFO was issued.

 

34.10 Transporter Cost Recovery for OFO. Transporter shall direct bill pipeline

transmission charges incurred as a result of an OFO to all firm Shippers on a

system-wide basis.

 

34.11 Transporter Liability for OFOs. Transporter shall not be liable to any person for

any costs, damages or other liability associated with the issuance of, or the

failure to issue, any OFOs, other than such costs to be paid by Transporter

according to Section 34.9 of the General Terms and Conditions of this Tariff;

provided, however, Transporter shall be liable for acts of negligence or undue

discrimination, such standards to be judged in light of the emergency conditions

under which OFOs are issued.

 

34.12 Transporter’s Scheduling Authority. Transporter shall have the right to act as a

scheduling agent for a Shipper’s account if (a) the Shipper refuses to schedule Gas

receipts as specified by an OFO issued pursuant to Section 34.4(a) of the General

Terms and Conditions of this Tariff; or (b) if Transporter requires additional

quantities in less than the twenty-four (24) hour notice period normally required

for an OFO, and the Shipper has refused a verbal request to schedule the required

quantity of Gas.