Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 08/01/2009, Docket: RP09-737-000, Status: Effective

Twelfth Revised Sheet No. 357 Twelfth Revised Sheet No. 357

Superseding: Eleventh Revised Sheet No. 357

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

4. Time of payment extended if invoice delayed: If presentation of an invoice to

Shipper is delayed after the 9th business day of the month, then the time of payment

shall be extended accordingly unless the Shipper is responsible for the delay.

 

VII. POSSESSION OF GAS

 

As between Transporter and Shipper, Shipper shall be deemed to be in exclusive control

and possession of the gas to be transported (i) prior to receipt by Transporter at the

Receipt Point(s), (ii) after receipt by Transporter, when the gas is in the custody of

Shipper or Shipper's designee for separation, processing or other handling, and (iii)

after delivery by Transporter at the Delivery Point(s); otherwise, Transporter shall be

in exclusive control and possession of the gas. The party which shall be in exclusive

control and possession of the gas shall be responsible for all injury or damage caused

thereby to any third party. In the absence of negligence or willful misconduct on the

part of Transporter, Shipper waives any and all claims and demands against Transporter,

its officers, employees or agents, arising out of or in any way connected with (i) the

quality, use or condition of the gas after delivery from Transporter for the account of

such Shipper and (ii) any losses or shrinkage of gas during or resulting from custody of

Shipper or Shipper's designee.

 

VIII. PRESSURE OF GAS DELIVERY AND OPERATIONAL FLOW ORDERS: ACTION ALERTS, CRITICAL DAYS,

BALANCING ALERTS, AND HYDROCARBON DEWPOINT LIMITATIONS

 

1. Pressure of Deliveries: With respect to all deliveries by Transporter, Transporter

shall make deliveries at Shipper's designated delivery points as nearly as

practicable at Transporter's line pressure; provided that the minimum pressure shall

be as stated in Shipper's Transportation Service agreement and shall not be less

than 100 pounds per square inch gauge.

 

2. Operational Flow Orders: Transporter shall have the right to issue Operational Flow

Orders (OFOs) as specified in this Section to Shippers, Shippers' Agents, point

operators, and/or Balancing Agreement Holders (referred to collectively as "OFO

Recipients"). As stated in NAESB Standard 1.2.6 (Version 1.8), an Operational Flow

Order is an order issued to alleviate conditions, inter alia, which threaten or

could threaten the safe operations or system integrity, of the transportation

service provider's system or to maintain operations required to provide efficient

and reliable firm service. Whenever a transportation service provider experiences

these conditions, any pertinent order should be referred to as an Operational Flow

Order.