Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 108 Original Sheet No. 108 : Effective

 

 

 

GENERAL TERMS AND CONDITIONS

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3. PRIORITY OF SERVICE

 

3.1 ALLOCATION OF CAPACITY

 

This Section 3.1 governs the allocation of firm capacity

on Horizon's System among entities requesting firm services. In

assigning priority to otherwise valid requests for any particular

firm service, Horizon shall afford priority based on rate, term, and

volume, applying consistent and objective economic criteria. In

applying such criteria where a Negotiated Rate or Negotiated Rate

Formula is involved, the value assigned to a request which includes a

Negotiated Rate or Negotiated Rate Formula shall be limited by the

Recourse Rate as provided in Section 33 of these General Terms and

Conditions. Requests with the same rate, term, and volume shall be

assigned priority on a first come, first served basis. In the event

valid requests are received on the same day and there is insufficient

capacity to serve all such Shippers, Horizon shall allocate the

available capacity on a pro rata basis based on each Shipper's

requested MDQ. Horizon shall not be required to grant otherwise valid

requests at less than the applicable maximum rate, but may do so on a

non-discriminatory basis.

 

3.2 SCHEDULING OF FIRM SERVICES

 

(a) While firm services are not ordinarily interrupted

due to lack of capacity, capacity constraints may exist from time

to time or interruption of service may be necessary for certain

other reasons. Horizon may decline to schedule and/or may curtail

firm service for any of the following reasons:

 

(1) If Shipper tenders gas which does not

conform to the applicable pressure or quality requirements of these

General Terms and Conditions;

 

(2) For reasons of Force Majeure;

 

(3) Due to routine repair and maintenance to be

reasonably determined by Horizon;

 

(4) Pursuant to Section 3.8 of these General

Terms and Conditions;