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. 234 Original Sheet No. 234 : Effective

 

 

 

GENERAL TERMS AND CONDITIONS

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34.7 CRITICAL TIME

 

(a) Horizon shall advise Shippers on its system if it

is declaring a Critical Time, as described in Section 10.5 of

these General Terms and Conditions, and shall specify the nature

of the situation creating the Critical Time.

 

(b) Horizon may issue Operational Flow Orders as

described in Section 34.6 during a Critical Time.

 

(c) The penalty for failure to abide by an

Operational Flow Order issued during a Critical Time shall be

equal to the volume (in Dth) by which Shipper deviated from the

requirement of the Operational Flow Order multiplied by the

greater of (i) $15.00 or (ii) the sum of three hundred percent

(300%) of the highest authorized overrun rate which can be

applicable to an FTS Agreement on Horizon's system pursuant to

Section 10 of these General Terms and Conditions plus three

hundred percent (300%) of the highest Weekly Index Price used to

determine the Average Monthly Index Price (as determined in

accordance with Section 11) for the month in which the violation

occurred. Additional amounts may be billed pursuant to Section

34.10.

 

34.8 UNILATERAL ACTION

 

In the event that the actions under Sections 34.4

through 34.7 are inadequate or there is insufficient time to carry

out such procedures, Horizon may periodically have to take

unilateral action to maintain system pressure and preserve the

overall operational integrity of Horizon's system (or any portion

thereof). Horizon is authorized to use all the resources of its

system to such ends, through the integrated operation of line pack

and supply received into Horizon's system, even though gas may be

owned by a person other than the entity receiving delivery.

Horizon shall not, however, be responsible as a supplier of gas to

any Shipper.