American Midstream (Midla), LLC

Sixth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-483-000, Status: Effective

Original Sheet No. 172 Original Sheet No. 172

 

17. PENALTIES

 

17.1 (a) In addition to the penalties set forth below, a Customer shall be liable for and

shall be required to reimburse Pipeline for all penalties, charges and fees which Pipeline

is required to pay to other pipelines as a consequence of such Customer's actions. The

charges under this Section 17.1(a) shall be flowed through to such Customers on an as-

billed basis.

 

(b) A Customer shall indemnify Pipeline from and against any and all losses, damages,

or expenses of every kind and character which Pipeline or another Customer may suffer,

sustain, or be liable for and shall hold Pipeline harmless from and against any and all

damages, claims, suits, actions, or proceedings whatsoever threatened or initiated as a

result of any action, inaction, or omission by the indemnifying Customer which results in

the assessment of a penalty under this Section 17.

 

(c) Pipeline shall have the option to waive or reduce, on a non-discriminatory basis, the

penalties set forth in this Section 17. Pipeline shall waive any penalties attributable to the

actions, inactions, or omissions of Pipeline or third parties under the control of Pipeline.

 

(d) Any penalty or cash-out revenue collected pursuant to this Section 17, Section 5 or

Section 14 by Pipeline during each Month of a 12 Month period, beginning on the

effective date of the Section 17.1(d) net of all costs incurred by Pipeline, shall be

refunded to each non-offending Customer (during the period the penalty or cash-out was

incurred). For the purpose of computing credits to non-offending customer(s), such

calculations shall be computed on a monthly basis. If Pipeline incurs a net cost during

such 12 Month period, the amount will be deferred to offset against penalty revenue

during the next 12 Month period. Carrying costs shall be calculated on the net balance

each Month utilizing the rate set forth in Section 154.501 of the Commission's

Regulations.

 

(e) In the event Customer's actions would subject Customer to more than one (1)

penalty provision under this