Freebird Gas Storage, L.L.C.

First Revised Volume No. 1

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Effective Date: 10/01/2008, Docket: RP08-304-000, Status: Effective

Original Sheet No. 129 Original Sheet No. 129 : Suspended

 

to the other information contemplated by this Section 5.5(e), such notice shall

also include information about the status of operational variables that

determine when an OFO will begin and end, and Freebird shall post periodic

updates of such information promptly upon occurrence of any material change in

the information. Freebird will post a notice on the Internet Web Site informing

the Shippers and point operators when any OFO in effect will be lifted and

specifying the factors that caused the OFO to be issued and then lifted, to the

extent such factors are known.

 

(f) OFOs. In the event that, in Freebird’s judgment, immediate action is

required in order (1) to alleviate conditions which threaten to impair

reliable Firm service, (2) to maintain operations at the pressures required to

provide efficient and reliable service, (3) to have adequate Gas supplies in

the System to deliver on demand, (4) to maintain services to all Firm Shippers

and for all Firm services, or (5) to maintain the System in balance for the

foregoing purposes, Freebird may immediately issue an OFO or take unilateral

action, including the curtailment of Firm service, to maintain the operational

integrity of Freebird’s System. For purposes of this Section, the operational

integrity of Freebird’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, and

the maintenance (on a reliable and operationally sound basis) of total System

deliverability and the quality of Gas delivered. Freebird shall post a notice

on its Internet Web Site specifying the factors that caused the OFO to be

issued, to the extent such factors are known. Freebird shall also provide

such notification via e-mail communication to those Shippers who have

submitted a request, and provided e-mail address information for at least one

contact person, via Freebird’s Internet Web Site to receive e-mail

notification of Critical Notices issued by Freebird.

 

(g) Termination of OFO. Freebird shall lift any effective OFO promptly upon

the cessation of operating conditions that caused the relevant System problem.

After Freebird has lifted the OFO, Freebird shall post a notice on its

Internet Web Site specifying the factors that caused the OFO to be issued and

then lifted, to the extent such factors are known. Freebird shall also

provide such notification via e-mail communication to those Shippers who have

submitted a request, and provided e-mail address information for at least one

contact person, via Freebird’s Internet Web Site to receive e-mail

notification of Critical Notices issued by Freebird.

 

(h) Penalties. All quantities tendered to Freebird and/or taken by Shipper on

a daily basis in violation of an OFO shall constitute unauthorized receipts or

deliveries for which an OFO penalty charge shall be assessed. The OFO penalty

charge for each Dekatherm of Gas by which Shipper deviated from the

requirements of the OFO shall be equal to the higher of (i) three (3) times

the applicable daily Gas Daily posting for Henry Hub for the Day on which the

deviation occurred or (ii) $25, multiplied by the quantity by which the

Shipper deviated from the requirements of the OFO.

 

Any penalty revenue collected, net of administrative costs, by Freebird

pursuant to this Section 5.5(h) shall be credited to those Firm and

Interruptible Shippers that did not incur OFO penalties pursuant to this

Section 5.5(h) in the Month for which OFO penalty revenues were received

("Non-Offending Shippers"), based on the ratio of the total charges paid

during that Month by the Non-Offending Shipper to the sum of the total charges

paid during that Month by all Non-Offending Shippers. Such credits shall be

calculated for each Month of the twelve (12) Month period ending August 31 of

each year, and will be included on the Non-Offending Shipper’s invoice for the

Month following the date of the final Commission order approving Freebird’s

penalty disbursement report; provided however that Freebird will calculate and

include such credits on Non-Offending Shippers’ invoices for a period shorter

than twelve (12) Months in the event and to the extent that the total

accumulated amount of OFO penalty revenue collected