Tres Palacios Gas Storage LLC

Original Volume No. 1

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Effective Date: 08/01/2008, Docket: RP08-424-000, Status: Effective

Original Sheet No. 132 Original Sheet No. 132

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(f) Action Alerts: In the event that TRES PALACIOS

determines that due to (1) an ongoing or anticipated weather

event, (2) a known equipment problem, or (3) the anticipated

continuation of a current system operational problem, action is

necessary to avoid a situation in which the system integrity is

jeopardized or TRES PALACIOS' ability to render firm service is

threatened, TRES PALACIOS may issue an Action Alert as set out

herein to forestall the development of the situation.

 

(1) Issuance of Alerts: Action Alerts will be noticed in accord

with the procedures set forth in Section 5.5(e) and TRES PALACIOS

will endeavor to provide a minimum of four hours notice.

 

(2) Action Alerts can be issued to effect any of the following:

 

(A) restriction of Interruptible services;

 

(B) restrictions of deliveries or receipts at specific Point(s)

of Receipt or Point(s) of Delivery covered by an operational

balancing agreement to the aggregate MDRQ or MDDQ under the

Storage Service Agreements for Firm Storage Services whose Primary

Point(s) of Delivery/Receipt, which are specified in the Storage

Service Agreement, are at the affected locations; and/or

 

(C) forced balancing such that point operators will be required

to assure that nominations equal flows or that receipts and

deliveries fall within the tolerance level designated in the

Action Alert.

 

(g) OFOs: In the event that, in TRES PALACIOS'

judgment, immediate action is required to alleviate conditions

which threaten to impair reliable firm service, to maintain

operations at the pressures required to provide efficient and

reliable service, to have adequate Gas supplies in the system to

deliver on demand, to maintain services to all firm Customers and

for all firm services, and/or to maintain the system in balance

for the foregoing purposes, TRES PALACIOS may forgo the action

described in Section 5.5(f) and immediately issue an OFO. In the

event that (l) Customer or point operator does not respond to an

Action Alert, (2) the actions taken thereunder are insufficient to

correct the system problem for which the Action Alert was issued,

or (3) there is insufficient time to carry out the procedures with

respect to Action Alerts, TRES PALACIOS may issue an OFO pursuant

to this Section 5.5(g) or take unilateral action, including the

curtailment of firm service, to maintain the operational integrity

of TRES PALACIOS' system. For purposes of this Section, the

operational integrity of TRES PALACIOS' system shall encompass the

integrity of the physical system and the preservation of physical

assets and their performance, the overall operating performance of

the entire physical system as an entity, and the maintenance (on a

reliable and operationally sound basis) of total system

deliverability and the quality of Gas delivered.