Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 12/07/2003, Docket: RP04- 51-000, Status: Effective

First Revised Sheet No. 70 First Revised Sheet No. 70 : Effective

Superseding: Original Sheet No. 70

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

4. OPERATING PROCEDURES (Continued)

 

4.6. Interruptions or Curtailment of Service: (Continued)

 

(d) Catastrophic Capacity Failure: In the event of a Catastrophic

Capacity Failure, Paiute will invoke Section 4.6(c) hereof,

Unscheduled Interruption or Curtailment. If a firm Shipper's

allocation of the ADQ is less than its scheduled quantity

and is insufficient to meet its High Priority demand, the

following procedure will be followed. To the extent that the

Catastrophic Capacity Failure has not precluded receipts from

Paiute's LNG Plant and does not preclude delivery to the

affected High Priority customer(s), then:

 

(1) The affected Firm Shipper(s) will request supplies from

its available LNG inventory.

 

(2) In the event that the affected firm Shipper(s) does not

have sufficient LNG inventory to meet the shortfall,

the affected Firm Shipper(s) will enter into immediate

negotiations with other Shippers to purchase the requir-

ed supplies, from available LNG inventories or otherwise.

 

(3) In the event that other Shippers are unable or unwilling

to sell the required supplies, Paiute will utilize avail-

able LNG inventory to forestall any High Priority cur-

tailment. In this event, the Firm Shipper(s) receiving

this emergency service shall return equivalent quantities

of gas to the LNG inventory and/or to the Shipper(s)

whose inventory was utilized as soon as practicable after

the conclusion of the Catastrophic Capacity Failure. The

method of returning such quantities shall be determined

by Paiute and the other Shipper(s) involved.

 

(4) In the event service to High Priority customers is

still in jeopardy, then curtailment will be invoked on

the Paiute system.

 

a. Firm Shippers will be required to provide demand by

end use priority to Paiute for the specific day in

question.