Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

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Effective Date: 05/21/2002, Docket: CP00- 6-004, Status: Effective

Original Sheet No. 154 Original Sheet No. 154 : Effective

 

 

 

GENERAL TERMS AND CONDITIONS

(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 "Florida

Gates via FGT", "High Common" price published in "Platts Gas

Daily" "Daily Price Survey", 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 "Florida Gates via FGT", "High Common" price

published in "Platts Gas Daily" "Daily Price Survey", 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 24.4 of the General Terms and

Conditions.