Oktex Pipeline Company

Original Volume No. 1

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Effective Date: 04/15/2002, Docket: RP01-183-001, Status: Effective

3rd Revised Sheet No. 34 3rd Revised Sheet No. 34 : Effective

Superseding: 2nd Revised Sheet No. 34

rights and shall be subjected to the obligations of its predecessor in title

hereunder. Otherwise, no assignment of the executed service agreement or any of the

rights or obligations hereunder or any portion of its effective Maximum Daily

Contract Demand shall be made. Either party may assign its right, title and

interest in and to the executed service agreement to a trustee or trustees,

individual or corporate, as security for bonds or other obligations or securities

without the necessity of obtaining such consent and without such trustee or trustees

assuming or becoming in any respect obligated to perform the obligations of the

assignor hereunder.

 

XIX. SCHEDULES AND CONTRACTS SUBJECT TO REGULATION

 

This Tariff, including these General Terms and Conditions and the respective

obligations of the parties under the Gas Transportation Contract(s) are subject to

valid laws, orders, rules and regulations of duly constituted authorities having

jurisdiction and are subject to change from time to time by addition, amendment or

substitution as provided by law.

 

XX. UNAUTHORIZED MONTHLY OVERDELIVERY AT RECEIPT POINT AND REMEDY

1. If any Shipper should during any month deliver or cause to be delivered to

Transporter at any Receipt Point, under the applicable Rate Schedule and

without Transporter's authorization, a quantity of natural gas which exceeds the

sum of Shipper's Input Quantity scheduled for such Receipt Point for such month,

said quantity shall constitute an unauthorized overdelivery quantity. Within 25

days of the end of the month in which such unauthorized overdelivery quantities

accrued Transporter shall send Shipper notice of such unauthorized

overdelivery quantities.

 

2. Within thirty-five (35) days of the date of the Transporter's notice to

Shipper that Shipper has tendered or caused to be tendered to Transporter during

a month an unauthorized overdelivery quantity, Shipper shall correct such

unauthorized overdelivery quantity, provided, however, that Transporter may

require that Shipper take corrective action within a shorter period of time if

Transporter, in its reasonable discretion, determines that corrective action

within such shorter period of time is necessary to protect the integrity of

Transporter's system. If Shipper fails to correct such unauthorized

overdelivery quantity within the thirty-five (35) day period, then Shipper shall

pay to Transporter the overdelivery payment prescribed in Section 3 of this

Article XX.

 

3. In the event the unauthorized overdelivered quantity occurs during a

month when the overdelivery does not adversely affect reliability of service and

does not adversely impair pipeline integrity, the overdelivery payment payable

to Transporter shall be equal to two times the applicable maximum interruptible

transportation rate for the system affected plus Fuel and Use Quantity. In the

event the unauthorized overdelivered quantity occurs at a time when it adversely

affects reliability of service or adversely impairs pipeline integrity, the

overdelivery payment payable to Transporter shall be equal to Two Dollars

($2.00) per Dekatherm times the unauthorized overdelivery quantity during a

month in excess of 1550 Dekatherm or ten percent (10%) of the sum of the Input

Quantity scheduled for the applicable month, whichever is greater. The making

of this payment shall not relieve Shipper of Shipper's obligation to pay demand

charges payable hereunder. Nor shall such payment be considered a substitute for

any other remedies available to Transporter or any other Shipper against the

offending Shipper for failure to respect its obligation to adhere to the

provisions of its contract(s) with Transporter. Shipper shall take delivery of

such unauthorized overdelivery quantity within sixty-five (65) days from the

date of such notice. If Shipper fails to take delivery of such unauthorized

overdelivery quantity within such sixty-five (65) day period, then Shipper shall

incur and pay to Transporter the overdelivery payment prescribed herein for such

period and each additional thirty (30) day period that such gas remains on the

system.