Venice Gathering System, L. L. C.

Original Volume No. 1

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Effective Date: 01/01/1998, Docket: CP97-533-002, Status: Effective

Original Sheet No. 96 Original Sheet No. 96 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

If a Customer is notified by VGS of an OFO and fails

to comply with such OFO, such Shipper may be subject to a

penalty of $15.00 per Dth for quantities received and/or

delivered in excess of the quantities specified by VGS in

such OFO. If such Customer complies by adjusting its

tenders or takes within the time period specified in an OFO,

the Customer shall not be subject to the penalty set forth

in this Subsection 8.6. Customer compliance shall be a

change in gas flow to the level specified by VGS and will be

evidenced by the confirmation of a flow rate change from an

Upstream or Downstream Operator or the confirmation of a

flow rate change by VGS. VGS will assist any Customer in

complying with an OFO. VGS will not impose a penalty for

failure to comply if a Customer demonstrates that all

reasonable efforts have been made to comply, including but

not limited to taking other actions (in consultation with

VGS) to achieve the purpose of the OFO, and additionally

seeks VGS' assistance within the time specified in the OFO

for commencement of corrective action.

Where a nomination is required by VGS to make an

effective physical change necessary to comply with an OFO,

unless critical circumstances dictate otherwise, an OFO

penalty will not be assessed unless the Customer has the

opportunity to correct the circumstances giving rise to the

OFO and fails to so, or the action(s) taken fails to do so.

The opportunity to correct the critical circumstances will

include the opportunity: (a) to make a nomination that, once

confirmed and scheduled, would cure the circumstance giving

rise to the OFO, or (b) to take other appropriate action

that cures the circumstance giving rise to the OFO. A

Customer's response to an OFO will not be constrained by

restrictions on the submittal and processing of Intra-Day

Nominations.