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

Original Sheet No. 149A Original Sheet No. 149A : Suspended

 

GENERAL TERMS AND CONDITIONS

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Operational Flow Order or the declaration of Critical Time or other

operational action taken by Horizon under Section 34 of these

General Terms and Conditions. Costs that may be netted against

penalty revenue may include only actual, verifiable and prudent

incremental costs incurred to resolve the reliability concerns

actually caused by the particular party or parties against which the

penalty has been assessed and must relate to a circumstance which

resulted in the penalty revenue to be credited under this provision.

If these amounts are not adequate to reimburse Horizon for cashout

expenses, the unreimbursed cashout expenses shall be carried forward

to future years until recouped.

 

(b) (1) Any remaining amounts will be refunded pro rata to

all Shippers, except as provided below, through a credit to current

billing wherever feasible, based on the ratio of a Shipper's total

base reservation and base commodity charges paid during each month

to all such charges paid by all Shippers during such month;

provided, however, that such calculation shall exclude charges paid

by any Shipper during any month in which such Shipper failed to

comply with an Operational Flow Order or had an Unauthorized

Overrun. The refunds in the prior sentence shall be calculated on a

monthly basis but distribution of the credit shall be annual. If

the costs to be netted against penalty revenue exceed the penalty

revenue in any month, the excess costs may be carried forward to be

applied against penalty revenue in subsequent months. Thus, while

distribution is made annually, the net penalty revenue credit shall

be calculated on a monthly basis, subject to the carry forward of

costs as stated in the prior sentence. A Shipper which failed to

comply with an Operational Flow Order or which had an Unauthorized

Overrun shall be excluded from distribution of net penalty revenues

only for the month in which that violation occurred.

 

(2) Where capacity has been released, any amounts

distributed to the Original Shipper and the calculation and amounts

distributed to the Original Shipper shall be based on the gross base

reservation and base commodity charges paid by that Shipper (without

considering any credits from Replacement Shippers) during the

relevant annual period; provided, however, that in the case of a

permanent release, any amounts distributed hereunder with respect to

the released capacity shall be distributed to the Replacement

Shipper and the calculation and the amounts distributed to the

Replacement Shipper shall be based on the base reservation and base

commodity charges paid by that Replacement Shipper during the

relevant annual period.