North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 08/12/2002, Docket: RP02-363-000, Status: Effective

Original Sheet No. 161 Original Sheet No. 161 : Effective

 

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

18. OPERATIONAL FLOW ORDERS ("OFO") (Continued)

 

18.6 In the event Shipper does not respond to the OFO and NBP believes

it is necessary to take actions such as buying or selling gas to

maintain system integrity or to prevent interrupting service to

another Shipper, NBP shall have the right, but not the obligation,

to take such remedial actions as it deems necessary. If NBP takes

these actions, it shall be made whole by the nonresponding Shipper

for all costs that NBP incurs either through retention of penalty

revenues or by direct reimbursement by Shipper. NBP shall not be

liable for any costs incurred by any Shipper/Operator in complying

with an OFO.

 

18.7 NBP shall not be responsible for any damages that result from any

interruption in Shipper's service that is a result of a Shipper's

failure to comply promptly and fully with an OFO and the non-

complying Shipper(s) shall indemnify NBP against any claims of

responsibility.

 

18.8 Notwithstanding the foregoing, when Gas supplies necessary to

effectuate transportation deliveries are not flowing on the

system, NBP will not be responsible for backing up such supplies

and the associated deliveries will be subject to interruption.

 

18.9 Where a nomination is required by NBP to make an effective

physical change necessary to comply with an OFO, unless critical

circumstances dictate otherwise, an OFO penalty should not be

assessed unless the Shipper is given the opportunity to correct

the circumstance giving rise to the OFO and fails to do so, or the

action(s) taken fails to do so. The opportunity to correct the

critical circumstance should include the opportunity to:

 

(a) make a nomination, which, once confirmed and scheduled would

cure the circumstance giving rise to the OFO, or

 

(b) take other appropriate action which cures the circumstance

giving rise to the OFO.

 

A Shipper's response to an OFO should not be constrained by

restrictions on the submittal and processing of intra-day

nominations.