Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 11/29/2009, Docket: RP09-558-000, Status: Effective

First Revised Sheet No. 364 First Revised Sheet No. 364

Superseding: Original Sheet No. 364

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

18. DETERMINATION OF DELIVERIES AND RECEIPTS, ALLOWABLE DAILY DISPATCHING VARIATIONS, OVERRUN

CHARGES AND PENALTIES (Continued)

 

18.3 Unauthorized Daily Overrun Defined (Continued)

 

(e) Buyer's Scheduled Daily Delivery at that delivery point on such day under

Seller's Rate Schedule IT, certificated interruptible X-Rate Schedules and Rate

Schedule IDLS when interruptible capacity on Seller's System is allocated or when

such service is limited pursuant to the provisions of Section 11.3(d) of the

General Terms and Conditions, and

 

(f) Buyers Scheduled Daily Delivery at that delivery point on such day pursuant to

Section 2.8 of Sellers FT and FT-G Rate Schedules, Section 2.5 of Sellers FTN

Rate Schedule and Section 2.6 of Seller's FDLS Rate Schedule when delivery to

such point is reduced or interrupted in accordance with Sections 11 and 28 of the

General Terms and Conditions.

 

18.4 Overrun Charges and Penalties

 

Buyer shall pay Seller for all such unauthorized daily overrun quantities taken on

such day, an overrun charge equal to Seller's Rate Schedule IT rate per dt calculated

from Zone 3 to the zone in which Buyer receives such quantities and such quantities

shall be treated as deliveries under Seller's applicable rate schedule(s) and as an

imbalance thereunder. If Buyer takes on any day unauthorized overrun quantities in

excess of the allowable daily dispatch variations set forth in Section 18.2 above,

Buyer shall pay in lieu of such IT charge a penalty of $2.50 per dt up to 50 dt, in

excess of that allowable variation for the particular day, and for any quantity of

additional unauthorized daily overrun taken on such day, a penalty equal to the higher

of (i) $50 per dt or (ii) three times the highest weekly Reference Spot Price for the

current month (as set forth in Section 37.1(a) of the General Terms and Conditions)

applicable to the zone(s) in which the unauthorized daily overrun occurs.

 

18.5 Unauthorized Overruns During Periods of Curtailment

 

In addition to the provisions for unauthorized daily overruns and penalties therefor

under Section 18.3 and 18.4 hereof, any quantity taken by Buyer in excess of its

Entitlement under Section 13 by an amount of 100 dt or two-tenths (0.2) percent of

such Entitlement, whichever is greater, shall constitute an unauthorized overrun, for

which Buyer shall pay Seller a penalty of $10 per dt for any such unauthorized

overrun.

 

18.6 Disposition of Penalties

 

All overrun penalties collected by Seller during the annual period ending July 31,

less an amount equal to Seller's Rate Schedule IT rate per dt multiplied by the total

quantity of overruns, which represents Seller's cost to provide the interruptible

transportation service, shall be the penalty revenue distributed pursuant to Section

54 of the General Terms and Conditions.

 

18.7 Reservation

 

The payment of a penalty for an unauthorized overrun quantity shall under no

circumstances be considered as giving any Buyer the right to take such unauthorized

overrun quantity nor shall such payment be considered as a substitute for any other

remedy available to Seller or any other Buyer against the offending Buyer for failure

to respect its obligation to stay within its entitlements.