Paiute Pipeline Company

Second Revised Volume No. 1-A

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

Second Revised Sheet No. 87 Second Revised Sheet No. 87 : Effective

Superseding: Irst Revised Sheet No. 87

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

5. OVERRUN AND UNDERRUN, BALANCING AND PENALTY PAYMENTS (Continued)

 

5.3 Balancing: (Continued)

 

(1) Any Shipper whose daily imbalance falls outside a

tolerance range of plus or minus ten percent (10%)

of Shipper's scheduled quantity for such day or five

hundred (500) Dth, whichever is greater, shall be

notified by Paiute of such imbalance. After either

verbal or written notification, by Paiute, Shipper

shall take the necessary corrective action to

correct or avoid the daily imbalance situation.

Unless Shipper and Paiute's dispatcher reach an

agreement to provide Shipper with additional time,

such action shall be taken at the time of Shipper's

next scheduling pursuant to Section 4.2(a) of the

General Terms and Conditions of this tariff. In all

cases, the Shipper shall have a minimum of forty-

eight (48) hours after such scheduling to correct

the imbalance.

 

(2) In the event Shipper fails to fully implement the

corrective action as agreed upon or prescribed pur-

suant to Section 5.3(c)(1) hereof, Shipper shall,

commencing on the date on which corrective action

was to be completed, be assessed a penalty, for each

day thereafter and until such corrective action has

been completed. The penalty shall be five dollars

($5.00) per Dth and shall be applied to those quan-

tities that each day remain outside of the tolerance

range specified in Section 5.3(c)(1) hereof.

 

(3) Paiute will not invoke the above procedures, and will

waive the above imbalance penalties, if, in Paiute's

reasonable judgment, Shipper's actions have not

jeopardized Paiute's ability to operate its system

or impaired Paiute's ability to meet its other

service obligations. Penalties or waivers of penalties

will be applied uniformly and in a non-discriminatory

manner.