Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 11/01/2003, Docket: RP02-153-003, Status: Suspended

First Revised Sheet No. 145 First Revised Sheet No. 145 : Suspended

Superseding: Original Sheet No. 145

GENERAL TERMS AND CONDITIONS

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an unauthorized overrun, the Shipper shall pay Horizon the applicable

authorized overrun rate and, in addition, an unauthorized overrun charge

equal to the volume of the overrun multiplied by an Unauthorized Overrun

Rate. The maximum Unauthorized Overrun Rate is 200% of the maximum Rate

Schedule ITS rate; provided, however, that the Unauthorized Overrun Rate may

be discounted to any level between zero and this maximum rate. Only a single

Overrun Charge shall apply to any volume even though it may represent a

overrun of more than one restriction under the applicable Rate Schedule.

 

(2) If the volumes allocated to any FTS or ITS

Agreement fail to equal the confirmed nomination under such Agreement, the

following charges [in addition to any charges applicable under subsection

(1)] shall apply based on the degree of variance between actual deliveries,

and Shipper's rights and/or confirmed nominations (no charge hereunder shall

apply for variances at Receipt Points):

 

VARIANCE CHARGE

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0% to 5% No additional charges

5% to 10% $0.10/Dth

10% to 20% $0.20/Dth

20% to 50% $0.50/Dth

Above 50% $1.00/Dth

 

(3) Tiered Balancing Service Charges under Sections

10.2, 10.3 and 10.4 shall be applied on a graduated basis, i.e., the

specified charge shall apply only to that portion of the variance which is

within the corresponding tier between its lower and upper percentage

boundaries (variances within a range greater than the lower boundary and

equal to or less than the upper boundary) and not to any portion of the

variance falling within other tiers. Horizon may discount charges under

Sections 10.2, 10.3 and 10.4 on a basis which is not unduly discriminatory to

a level between zero and the applicable variance charges.

 

(b) A Shipper subject to any Overrun Charges and/or

Charge(s) under subsection (a) shall, in addition, pay an applicable

transportation commodity charge on takes from Horizon in excess of applicable

rights and shall be obligated to return any volumes taken from Horizon in

excess of volumes delivered to Horizon. The volume of any imbalance remaining

at the end of the month will be cashed out under Section 11 of these General

Terms and Conditions.