Southwest Gas Storage Company

First Revised Volume No. 1

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Effective Date: 05/25/2003, Docket: RP00-471-001, Status: Effective

First Revised Sheet No. 117 First Revised Sheet No. 117 : Effective

Superseding: Sub Original Sheet No. 117

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

5. OPERATIONAL FLOW ORDERS (OFOs)

 

5.1 Southwest shall have the right to issue an OFO to any Shipper

when, in Southwest's sole judgment, it is required to alleviate

conditions which threaten system integrity, safety or service or

to ensure compliance with the provisions contained in this Tariff.

An OFO may be issued on a contract basis or on all or a portion of

the system. During conditions which threaten system integrity,

safety or service, an OFO will not be issued to protect

interruptible service.

 

Examples of conditions which may cause OFOs to be issued

include, but are not limited to:

 

(A) Actual injections exceeding scheduled injections causing high

pressure to back off scheduled injections;

 

(B) Unscheduled storage facility maintenance and repairs

affecting capacity;

 

5.2 Prior to issuing an OFO, Southwest will take all reasonable

actions to minimize the issuance and adverse consequences of the

OFO.

 

5.3 Any Shipper subject to an OFO will be deemed to be in compliance

with the OFO if its actual Quantities do not vary from the

Quantities specified in the OFO by more than the tolerance level

stated in the OFO, which shall not be less than two percent (2%).

If the actual Quantities vary from the Quantities specified in the

OFO by more than the tolerance level, the excess variance shall be

subject to a $25 per Dt penalty; provided, however, in no event

will this penalty apply until Shipper has had at least four (4)

hours to take the actions required to comply with the OFO or is

unable to comply due to force majeure, as defined in Section 15

herein. Southwest shall accommodate Shipper's nomination to

comply with an OFO, to the extent that such nomination does not

affect any other Shipper's scheduled Quantities, at times other

than the intra-day nomination cycles identified in Section 3.1(D)

of the General Terms and Conditions.

 

5.4 Nothing shall limit Southwest's right to take action as may be

required to physically adjust actual injections and actual

withdrawals of gas in order to alleviate conditions which threaten

the integrity of its storage facilities.