Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 09/04/2008, Docket: CP07-44-005, Status: Effective

Original Sheet No. 263 Original Sheet No. 263

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

13. OPERATIONAL FLOW ORDERS (OFOs) (continued)

 

13.7 Operational Flow Orders: In the event that (1) Shipper/point

operator does not respond to an Action Alert, or (2) the actions

taken thereunder are insufficient to correct the system problem

for which the Action Alert was issued, or (3) there is

insufficient time to carry out the procedures with respect to

Action Alerts, Transporter may periodically take unilateral

action, including the curtailment of firm Transportation Service,

to maintain the operational integrity of Transporter's system (or

any portion thereof). For purposes of this Section 13.7, the

operational integrity of Transporter's system shall encompass the

integrity of the physical system and the preservation of physical

assets and their performance, the overall operating performance of

the entire physical system (or any portion thereof), and the

maintenance (on a reliable and operationally sound basis) of total

system deliverability and the quality of Gas delivered. Notice of

an Operational Flow Order will be provided pursuant to and in

accordance with Section 13.5 above.

 

13.8 Penalties: If a Shipper/point operator fails to comply with an

Action Alert or Operational Flow Order, the Shipper/point operator

shall be subject to a penalty as follows:

 

Action Alert penalty for each Dekatherm of Gas by which

Shipper/point operator deviated from the requirements of the

Action Alert equal to the product of 200% times the average

Cashout price as determined pursuant to Section 8.7(a) of these

General Terms and Conditions, for each Day that said Action Alert

is in effect.

 

Operational Flow Order penalty for each Dekatherm of Gas by which

Shipper/point operator deviated from the requirements of the

Operational Flow Order equal to the product of 500% times the

average Cashout price as determined pursuant to Section 8.7(a) of

these General Terms and Conditions, for each Day that said

Operational Flow Order is in effect.

 

Any penalty revenues received by Transporter as a result of the

operation of Section 13.8 above will be credited pursuant to

Section 23.4 of the General Terms and Conditions.