Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

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Effective Date: 08/01/2007, Docket: RP06-614-003, Status: Effective

Third Revised Sheet No. 146 Third Revised Sheet No. 146 : Effective

Superseding: First Revised Sheet No. 146

 

GENERAL TERMS AND CONDITIONS

(continued)

 

22.4 Alert Day

 

A. Transporter shall have the right to declare an Alert Day in the event of operational distress

caused by actual or anticipated flow variances at receipt or delivery points which threaten

the integrity or safe operation of the pipeline. Transporter shall use reasonable efforts to

resolve the situation causing the operational distress prior to declaring an Alert Day. A

High Line Pack Alert Day shall be applied to flow variances that exacerbate the high line pack

conditions (e.g. overdelivery into Transporter at a receipt point(s) or undertakes from

Transporter at a delivery point(s)). A Low Line Pack Alert Day shall be applied to flow

variances that exacerbate the low line pack conditions (e.g. underdelivery into Transporter at

a receipt point(s) or overtakes from Transporter at a delivery point(s)). Transporter will

localize its imposition of an Alert Day to the smallest affected area necessary to resolve the

problem and to those Operator(s) causing the problem where such Operator(s) may be identified.

Transporter will determine whether it will issue an Alert Day based on the operating status of

the pipeline system using the following criteria: weather forecast, system conditions-line

pack, overall projected pressures at monitored locations, facility status-horsepower

utilization and availability, and overall send out projections and availability. The Alert

Day will be in effect only for the gas day for which it is issued. If conditions require, new

Alert Days will be issued for subsequent gas days based upon the above stated criteria.

 

B. Transporter shall provide as much notice of the Alert Day declaration as is reasonably

possible, but in any event such notice shall be provided at least two (2) hours before the

beginning of the evening nomination cycle for the upcoming gas day. The notice shall

designate the estimated duration of the Alert Day condition, whether it is a High Line Pack

Alert Day or a Low Line Pack Alert Day and whether it applies system wide, only in certain

affected areas, or only to certain Operator(s). Transporter shall provide affected parties

with notification of Alert Days through the Shipper's choice of Internet e-mail or direct

notification to the Shipper's Internet URL address. Unless the affected party and Transporter

have agreed to exclusive notification via EDI/EDM, the affected party should provide

Transporter with at least one Internet e-mail address to be used for notification of Alert

Days. The obligation of Transporter to provide notification is waived until the above

requirement has been met. Transporter will support the concurrent sending of electronic

notification of Alert Days to Internet e-mail addresses for each affected party. Affected

parties will manage internal distribution of electronic notices.

 

C. If actual volumes vary from scheduled volumes in the direction of the condition (e.g. high

line pack or low line pack) on an Alert Day, a penalty may be imposed on Operator(s) subject

to the Alert Day declaration as follows:

 

1. For Operator's actual volumes which vary from scheduled volumes by more than 500 MMBtu or

four percent (4%), whichever is greater, at a measured point subject to the Alert Day

declaration, a penalty shall apply.

 

Operator shall pay a penalty imposed by Transporter equal to the greater of $5.00 per Dth or

two (2) times the applicable MIP or average of the applicable MIPs per dth for volumes in

excess of the greater of 500 MMBtu or four percent (4%) tolerance but less than the six

percent (6%) tolerance level. Operator shall also pay a penalty imposed by Transporter equal

to the greater of $10.00 per Dth or three (3) times the applicable MIP or average of the

applicable MIPs per dth for volumes in excess of the greater of 500 MMBtu or equal to or

greater than the six percent (6%) tolerance level.

 

2. Such penalty shall not be charged if the variance is caused by a "Force Majeure" event as

defined in Section 11.1 of the General Terms and Conditions of this Tariff or due to

error, omission or request of Transporter.

 

3. All penalty revenues collected pursuant to this section will be refunded to Shippers

annually, based upon the ratio of each Shipper's scheduled throughput to the total system

scheduled throughput.