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. 36 3rd Revised Sheet No. 36 : Effective

Superseding: 2nd Revised Sheet No. 36

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

tender or cause to be tendered to Transporter Dekatherms of gas equal to the unauthorized

overrun quantity that Shipper took or caused to be taken at the Delivery Point. If Shipper

within such thirty-five (35) day period fails to tender or cause to be tendered

to Transporter such excess Dekatherms, then Shipper shall pay Transporter the

amount set forth below. If the unauthorized overrun quantity occurs during a

period in which it does not adversely affect reliability of service or adversely

impair pipeline integrity, the overrun payment to Transporter shall be equal to

two times the maximum interruptible transportation rate for the system affected

plus the Fuel and Use quantity. If the unauthorized overrun amount occurs during

a period in which it adversely affects reliability of service or adversely

impairs pipeline integrity, the overrun payment to Transporter shall be equal

to Five Dollars ($5.00) per Dekatherm times the unauthorized overrun quantity

which is in excess of 1550 Dekatherms or ten percent (10%) of the sum of the

Equivalent Quantities for the applicable month, whichever is greater. (Such gas

that is less than the 1550 Dekatherms or ten percent (10%) of the sum of the

Equivalent Quantities for such month are hereinafter referred to as the

Allowable Overrun Gas) The making of this payment shall not relieve Shipper of

Shipper's obligation to deliver to Transporter the Dekatherms that equal the

Allowable Overrun Gas. If Shipper fails to deliver to Transporter such Allowable

Overrun Gas within a sixty (60) day period after the end of the contract term,

then Shipper shall pay to Transporter an amount equal to Five Dollars ($5.00)

per Dekatherm times the Allowable Overrun Gas.

 

3. The obligation to make overrun payments for an unauthorized overrun

quantity shall not under any circumstances be considered as giving any Shipper

the right to take or cause to be taken unauthorized overrun quantities nor shall

such payment be considered as 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.

 

4. Transporter shall have no liability to any person on account of a

Shipper's failure on any day to receive delivery of the quantity of natural gas

to which it was entitled under its contracts with Transporter where such failure

was caused by the taking of an unauthorized overrun quantity by another Shipper.

 

XXIII. UNAUTHORIZED MONTHLY UNDERRUN AT DELIVERY POINT AND REMEDY

 

1. If during any month the sum of Shipper's Equivalent Quantities for each

Delivery Point for each day of such month exceeds the gas actually taken by

Shipper during such month at any such Delivery Point, said quantity shall

constitute an unauthorized underrun quantity. Within 25 days of the end of the

month in which such unauthorized underrun quantities accrued Transporter shall

send Shipper notice of such unauthorized underrun quantities.

 

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

Shipper of the unauthorized underrun quantity, Shipper shall correct such

unauthorized underrun. If Shipper fails to correct such unauthorized underrun

within such thirty-five (35) day period, then Shipper shall pay to Transporter

the amount set forth below. If the unauthorized underrun quantity occurs during

a period in which it does not adversely affect reliability of service or

adversely impair pipeline integrity, the underrun payment to Transporter shall

be equal to two times the maximum interruptible transportation rate for the

system affected plus the Fuel and Use quantity. If the unauthorized underrun

amount occurs during a period in which it adversely affects reliability of

service or adversely impairs pipeline integrity, the underrun payment to

Transporter shall be equal to Two Dollars ($2.00) times the unauthorized

underrun quantity which is in excess of 1550 Dekatherms or ten percent (10%) of

the sum of the scheduled Equivalent Quantities for such month, whichever is

greater. Shipper shall take delivery of such unauthorized underrun quantity

within sixty-five (65) days after such notice. If Shipper fails to take delivery

of such unauthorized underrun quantity within such sixty-five (65) day period,

then Shipper shall pay to Transporter an amount equal to Two Dollars ($2.00) per

Dekatherm times the unauthorized underrun quantity for such period and for

each additional thirty (30) day period that such gas stays on the system.

3. Imbalance penalties hereunder are based on the difference between actual

receipts and actual deliveries, rather than scheduled quantities

.