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. 72 First Revised Sheet No. 72 : Effective

Superseding: Riginal Sheet No. 72

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

4. OPERATING PROCEDURES (Continued)

 

4.6. Interruptions or Curtailment of Service: (Continued)

 

(e) Catastrophic Supply Failure: In the event of a Catastrophic

Supply Failure, Paiute will invoke this curtailment section

upon request from Firm Shipper(s) stating that High Priority

load will be curtailed, and Paiute shall issue an Operational

Flow Order (OFO) applicable to all shippers, restricting

deliveries of gas to all shippers to no more than their

scheduled quantities, subject to the following procedure for

High Priority load only:

 

(1) Paiute will overpull on upstream pipelines to the maximum

extent possible without incurring a penalty. The affected

Firm Shipper(s) will overpull on Paiute. If an upstream

pipline has invoked a "Declared Entitlement Period" or

similar tariff restriction on overpull, Paiute will not

be willing to incur a penalty from such upstream pipeline

until (2) and (3) below have been exhausted.

 

(2) The affected Firm Shipper(s) must request supplies from

its available LNG inventory.

 

(3) In the event that the affected Firm Shipper(s) does not

have sufficient LNG inventory to meet the shortfall, the

affected Firm Shipper(s) must enter into immediate nego-

tiations with other Shippers to purchase the required

supplies.

 

(4) If after volumes available from (1), (2) and (3) above

are exhausted and additional volumes are required, Paiute

will contact its upstream pipeline(s) to determine the

effect of additional overpulls by Paiute, and upon receiv-

ing operating approval, and only to the extent of that

approval, then Paiute will begin overpulling on the up-

stream pipeline(s) and incurring penalties. Any Firm

Shipper overpulling on Paiute will in turn be subject to

the applicable penalties contained in Paiute's tariff.