Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 10/02/2005, Docket: RP05-657-000, Status: Effective

Second Revised Sheet No. 241 Second Revised Sheet No. 241 : Effective

Superseding: First Revised Sheet No. 241

 

GENERAL TERMS AND CONDITIONS

 

 

8. OPERATIONAL FLOW ORDERS (OFO) (Continued)

 

8.9 Failure to Respond to OFO (Continued)

 

8.9.1 Unilateral Action (Continued)

 

For purposes of this Section, the operational integrity of Company'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 as an entity (or

any portion thereof), and the maintenance (on a reliable and

operationally sound basis) of total system deliverability and the

quality of gas delivered.

 

8.9.2 OFO Penalty

 

If a Shipper/Balancing Party fails to comply with an OFO it will be

subject to a Failure to Respond OFO Charge for each Dekatherm of gas by

which it deviated from the requirements of the OFO. The daily Failure

to Comply OFO Charge shall be computed based on a price per Dekatherm

equal to three times the midpoint of the range of prices reported for

"Chicago city-gates" as published in the Daily price survey in Platts

Gas Daily for the flow day on which the OFO is issued.

 

8.9.3 Waiving of Penalty/Charges

 

A Balancing Party shall not incur any charges or penalties if such

charges or penalties resulted from Shipper's/Balancing Party's

compliance with an OFO, including any preliminary action taken by

Shipper/Balancing Party in response to an OFO watch issued by Company

as a precondition to an OFO.

 

A Shipper/Balancing Party shall not incur any penalties if the OFO was

necessitated exclusively by Company's negligence or willful misconduct.

 

8.9.4 All amounts invoiced and collected by Company as payment of OFO

penalties under Subsection 8.9.2, net of incremental administrative

charges, will be treated as OFO penalties and shall be allocated by

Company to Shippers using the methodology set forth in Subsection 23.1

of the General Terms and Conditions.

 

8.10 Liability of Company

 

Company shall not be liable for any costs incurred by any Shipper/Balancing

Party in complying with an OFO. Company shall not be responsible for any

damages that result from any interruption in Shipper's/Balancing Party's

service that is a result of a Shipper's/Balancing Party's failure to comply

promptly and fully with an OFO, and the noncomplying Shipper/Balancing Party

shall indemnify Company against any claims of responsibility. However, Company

shall use reasonable efforts to minimize any such costs or damages, and nothing

herein shall exempt Company from liability in the event of Company's negligence

or willful misconduct.