Central Kentucky Transmission Company

Original Volume No. 1

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Effective Date: 05/01/2006, Docket: CP05- 48-002, Status: Effective

Original Sheet No. 107 Original Sheet No. 107 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

9. OPERATING CONDITIONS

 

9.1 Receipt and Delivery Quantities. Transporter may refuse to receive gas

from Shipper or for Shipper's account at the Receipt Point on such day or

days that Shipper does not accept the quantity nominated by Shipper at the

Delivery Point. Transporter may refuse to deliver quantities to Shipper at

the Delivery Point if Shipper should be unable to provide the equivalent

quantities to Transporter at the Receipt Point.

 

9.2 Daily Rates of Flow. The gas to be transported hereunder shall be

received and delivered at uniform hourly and daily rates of flow as nearly

as practicable, subject to the daily nominations as provided in Shipper's

applicable Rate Schedule and Section 6 hereof. It is recognized that due to

operating conditions, the quantities of gas received and delivered may not

be in balance on any one particular day. Transporter and Shipper shall

endeavor to keep such variance to a minimum.

 

9.3 Flow Control. Nothing contained herein or in Transporter's Rate

Schedules shall limit Transporter's right to operate flow control or other

equipment to require Shippers to remain precisely in balance as to receipts

and deliveries at any time. Failure by Transporter to operate flow control

or other equipment, or any allowance by Transporter of imbalances up to or

exceeding balancing limits shall not limit Transporter's right to require

Shippers to maintain strict balances or Transporter's right to operate flow

control or other equipment to require Shippers to remain precisely in

balance. Transporter will provide Shippers with advance notice of the

implementation of any flow control, but reserves the right to implement

flow control without prior notice in circumstances when it is necessary to

protect system integrity.

 

9.4 Hourly Flow. Transporter shall have the right but not the obligation

to mutually agree with any Shipper to an hourly flow rate for a stated

period at any receipt and/or delivery point(s) identified in the Rate

Schedule FTS pro forma Service Agreement that is different than the even

hourly flow rate required by Section 9.2 above and, where necessary, upon

specified conditions to ensure that such agreements do not have any adverse

effect on Transporter's system. Transporter will not enter into hourly flow

obligations or conditions that will adversely affect Transporter's ability

to meet its firm service obligations to an existing Shipper. In the event

that Transporter and Shipper mutually agree to such an hourly flow rate for

a stated period of time, the hourly flow rate and any conditions will be

specified in the pro forma Service Agreement in the blank space provided.

Transporter shall have the right to install flow control or other equipment

to ensure compliance with the hourly flow rate agreed to by Transporter and

Shipper under this Section 9.4.