Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 01/01/2001, Docket: RP00-514-000, Status: Effective

Second Revised Sheet No. 152 Second Revised Sheet No. 152 : Effective

Superseding: First Revised Sheet No. 152

GENERAL TERMS AND CONDITIONS

(Continued)

 

(c) When giving a notice pursuant to Section 16.4(a) that the quantity of

gas taken in excess of the quantity of gas allocated for delivery at a

specific Delivery Point or group of Delivery Points will be subject to

Section 16.4(d), COMPANY shall recognize the right of a SHIPPER

which owns and operates a system having multiple Delivery Points with

COMPANY to take all or any portion of its Daily Entitlement at any

Delivery Point or group of Delivery Points listed on the Exhibit B to

its Service Agreement with COMPANY (up to the maximum meter

capacity of the existing facilities and the capacity of the pipeline and

laterals upstream of the meter); provided however, that SHIPPER'S

right to take gas at any Delivery Point is subject to COMPANY'S

obligation to deliver gas which another firm SHIPPER is authorized

to take at any Delivery Point on COMPANY'S system.

 

(d) All gas taken by a SHIPPER after receipt of a notice given pursuant

to Section 16.4(a) under an Alert Mode, which exceeds by more than

five (5) percent either (i) its Daily Entitlement for all of its

Delivery Points, as established either by an allocation order or

orders given by the COMPANY pursuant to Section 16.2 above and/or

through COMPANY'S confirmation of SHIPPER'S nominations in accordance

with the provisions of Section 12 of these General Terms and Conditions,

or (ii) the quantity of gas allocated for delivery to SHIPPER at

a specific Delivery Point or group of Delivery Points pursuant to such

procedures, shall be deemed to be Unauthorized Overrun Gas, and

COMPANY shall bill and SHIPPER shall pay for such Unauthorized

Overrun Gas, in addition to the applicable transportation charge, a

penalty of $15.00 per Dth. All gas taken by a SHIPPER after receipt

of a notice given pursuant to Section 16.4(a) under a Critical Mode,

which exceeds by more than two (2) percent either (i) its Daily Entitlement

for all of its Delivery Points, as established either by an allocation

order or orders given by the COMPANY pursuant to Section 16.2 above

and/or through COMPANY'S confirmation of SHIPPER'S nominations in

accordance with the provisions of Section 12 of these General Terms

and Conditions, or (ii) the quantity of gas allocated for delivery

to SHIPPER at a specific Delivery Point or group of Delivery Points

pursuant to such procedures, shall be deemed to be Unauthorized Overrun Gas,

and COMPANY shall bill and SHIPPER shall pay for such Unauthorized

Overrun Gas, in addition to the applicable transportation charge, a

penalty of $15.00 per Dth. All gas taken by a SHIPPER after receipt of

a notice given pursuant to Section 16.4(a) under an Emergency Mode,

which exceeds by more than two (2) percent either (i) its Daily Entitlement

for all of its Delivery Points, as established either by an allocation

order or orders given by the COMPANY pursuant to Section 16.2 above and/or

through COMPANY'S confirmation of SHIPPER'S nominations in accordance with

the provisions of Section 12 of these General Terms and Conditions, or (ii)

the quantity of gas allocated for delivery to SHIPPER at a specific Delivery

Point or group of Delivery Points pursuant to such procedures, shall be deemed

to be Unauthorized Overrun Gas, and COMPANY shall bill and SHIPPER shall pay

for such Unauthorized Overrun Gas, in addition to the applicable

transportation charge, a penalty of $15.00 per dth plus the applicable daily

Index Price per dth established in Natural Gas Intelligence's Daily Price

Index, Southern Natural-Louisiana, for any day in which the operational flow

order is in effect. If the operational flow order is in effect during a weekend,

then COMPANY shall use the average of the daily prices for the Friday before

the weekend and the Monday after the weekend to determine the applicable

daily index price for any day during the weekend.