Oktex Pipeline Company

Original Volume No. 1

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Effective Date: 05/20/1993, Docket: RS92- 70-001, Status: Effective

Original Sheet No. 32 Original Sheet No. 32 : Effective

 

be served on the party in default stating specifically the cause for

terminating the contract and declaring it to be the intention of the party

giving notice to terminate the same; thereupon, the party in default shall

have thirty (30) days after the service of the aforesaid notice in which to

remedy or remove the cause or causes stated in the notice for terminating the

contract, and if within said period of thirty (30) days the party in default

does so remove and remedy said cause or causes, then such notice shall be

withdrawn and the contract shall continue in full force and effect. In case

the party in default does not so remedy and remove the cause or causes within

said period of thirty (30) days, the contract shall terminate, provided

however, that no termination shall occur if the party in default has initiated

action to cure such material default but, despite its best efforts, has been

unable to complete the cure within such thirty (30) day period and is

continuing its action to complete the cure in good faith beyond the end of the

thirty (30) day period. Except as specifically set forth in Article V of the

Gas Transportation Contract(s) between Transporter and Shipper, the

termination or cancellation of any Gas Transportation Contract shall be

pursuant to the provisions of this paragraph, shall be without prejudice to

the right of Transporter to collect any amounts then due to it for

transportation services rendered prior to the time of cancellation and shall

be without prejudice to the right of Shipper to receive any transportation

service which has not been rendered but for which Shipper has paid prior to

the time of cancellation and without waiver of any remedy to which the party

not in default may be entitled for violations of the contract.

 

XIII. CURTAILMENT AND INTERRUPTION

 

1. Transporter shall have the right to curtail or discontinue

shipments, since Transporter may obligate itself to transport, on an

interruptible basis, more gas than there may be at times capacity to transport

and redeliver through its pipeline, in whole or in part on all or a portion of

its system from time to time and at any time, under the following conditions

and in the following manner:

 

2. Operating or Remedial Curtailment or Interruption may be

ordered by Transporter at anytime if in Transporter's reasonable judgment

capacity or operating conditions so require or it is desirable or necessary to

make modifications, repairs or operating changes, the conduct of which will

occasion interruption, upon such notice as is reasonable under the

circumstances and in the following order, to the extent practicable:

 

(a) Interruptible transportation service shall be

curtailed first, commencing with interruptible service that, at the time

notice was given, was at the least rate being charged by Transporter then in

effect under Rate Schedule ITS, and then in sequence ascending in the order of

rates to the then maximum rate. For service being rendered at the same rate,

consideration shall be given to the date service was requested and the request

most proximate to the date notice is given by Transporter of the particular

curtailment or interruption shall be the first interrupted; next in order

shall be service being charged the maximum rate in sequence starting with the

service which was requested most proximate to the date notice is given by

Transporter.

 

(b) If, in the sequence of interruptible service

curtailments, a capacity allocation becomes necessary among Shippers paying

the same rates and having the same date of service request, Transporter shall

allocate on a pro rata basis such available capacity to such similarly

situated Shippers.

 

(c) Any interruptible Shipper not paying the maximum

rate may be interrupted unless the interruptible Shipper is willing to pay a

rate that will match or exceed a competing offer to pay the highest rate then

being offered up to the maximum rate for interruptible transportation service.

If any interruptible Shipper is notified by Transporter of potential

interruption due to another interruptible Shipper's willingness to pay a

higher interruptible transportation rate than the discounted interruptible

rate