Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 3004 Original Sheet No. 3004 GENERAL TERMS AND CONDITIONS Section 18 (Cont'd) (l) If in Texas Gas' judgment, impending operating conditions will cause the delivery pressure to one or more Customers to drop below the pressure provided in the service agreement(s) of the Customer(s), Texas Gas may immediately issue an operational flow order pursuant to this Section 18 (l) of the General Terms and Conditions requiring that deliveries under all of Texas Gas' rate schedules be made on a uniform hourly rate effective 3 hours after issuance of the operational flow order, or enter the penalty situation. If only one segment of Texas Gas' system will be affected by low pressure, the operational flow order shall be limited to that segment of the system and shall be so stated. For the duration of this operational flow order, increases in scheduled delivery quantities within effected segments of Texas Gas' system will be made on a prospective basis only. (m) In the event the aggregate daily imbalance for all OBA's and nominated FT, TAPS and IT quantities exceeds the lesser of 5% of all such nominations or 50,000 MMBtu/d in one direction, an OFO may be issued requiring all OBA, FT, TAPS and IT customers whose imbalance exceeds 5% of their nomination in the same direction as the aggregate imbalance to take corrective action within 24 hours, or enter the penalty situation. An OFO will not be issued under this Section 18(m) unless necessary to maintain system integrity. (n) Texas Gas may, on a nondiscriminatory basis, issue such other reasonable operational flow orders as may be required for the purposes set forth in this Section 18 of the General Terms and Conditions in order to provide the services contemplated by this FERC Gas Tariff. (o) Compliance with the operational flow orders and the other terms and conditions of Texas Gas' FERC Gas Tariff is essential to Texas Gas' ability to provide deliveries and services under all rate schedules. A failure by one or more Customers to comply with the operational flow orders may affect Texas Gas' ability to provide such deliveries and services. In such event and in addition to other provisions hereof and not in lieu of any other remedies available in law or at equity, Texas Gas will, except for negligence, undue discrimination, or willful misconduct have no liability or responsibility for its inability to provide deliveries and services and will be indemnified and held harmless against any claims related to such failure to provide deliveries and services by the Customer(s) failing to comply with Texas Gas' FERC Gas Tariff and in particular the provisions of this Section 18. (p) In the event a customer's gas supplies are diverted to another customer or retained by Texas Gas as a result of an OFO, the party receiving such gas supplies shall either compensate the Customer whose gas was diverted or retained at 100% of Texas Gas' cashout index price, as described in Section 14 of these General Terms and Conditions, or reimburse such Customer with in-kind volumes, at such Customer's option.