Petal Gas Storage, L. L. C.

Original Volume No. 1

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Effective Date: 07/25/2008, Docket: RP08-421-000, Status: Effective

First Revised Sheet No. 134 First Revised Sheet No. 134

Superseding: Alternate Original Sheet No. 134

 

GENERAL TERMS AND CONDITIONS (Continued)

 

 

For OFO Level One: $10 + spot price

For OFO Level Two: $15 + spot price

For OFO Level Three: $25 + spot price

 

For purposes of Section 23.8(g), "spot price" shall mean the highest

daily spot price during the OFO period for the following location as

published in Inside FERC, Spot Gas Prices:

 

Delivered to Pipeline: Transco Zone 4.

 

Notwithstanding anything to the contrary in this Section 23.8, if

Customer is required to make a nomination pursuant to an OFO, unless

critical circumstances dictate otherwise, no damages and/or penalties

will be assessed unless Customer is given the opportunity to correct

the circumstances giving rise to the OFO. A Customer shall not incur

any charges or penalties if such charges or penalties would not have

been incurred but for Customer's compliance with an OFO, including any

preliminary action taken by Customer in response to a warning issued by

Petal as a precondition to an OFO. A Customer shall not incur any

penalties if the OFO was necessitated exclusively by Petal's negligence

or willful misconduct. Petal will credit all revenues from OFO

penalties in compliance with Section 24 of the General Terms and

Conditions.

 

(h) Liability of Petal: Petal shall not be liable for any costs incurred

by any Customer in complying with an OFO. Petal shall not be

responsible for any damages that result from any interruption in

Customer's service that is a result of a Customer's failure to comply

promptly and fully with an OFO, and the noncomplying Customer shall

indemnify Petal against any claims of responsibility. However, Petal

shall use reasonable efforts to minimize any such costs or damages, and

nothing herein shall exempt Petal from liability in the event of

Petal's negligence or willful misconduct.

 

(i) Unilateral Action: In the event that (1) Customer does not respond to

an OFO, or (2) the actions taken thereunder are insufficient to

correct the system problem for which the OFO was issued, or (3) there

is insufficient time to carry out the procedures with respect to OFOs,

Petal may periodically take unilateral action, including the

curtailment of firm service, to maintain the operational integrity of

Petal's system (or any portion thereof). For purposes of this

section, the operational integrity of Petal'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.