K O Transmission Company

Original Volume No. 1

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Effective Date: 07/10/2004, Docket: RP00-394-003, Status: Effective

Second Revised Sheet No. 124 Second Revised Sheet No. 124 : Effective

Superseding: First Revised Sheet No. 124

GENERAL TERMS AND CONDITIONS (continued)

 

20. Penalties (con't.)

 

to the applicable transportation rates and charges, including any overrun charge.

 

(b)

In the event Shipper seeks to avoid any penalty provided for in this Section on

the ground that such charge was incurred because of a force majeure event as

defined in Section 18 (Force Majeure and Curtailment) of the General Terms and

Conditions, Shipper shall document such force majeure event to Transporter.

Transporter shall waive penalties to the extent that it determines that the

imbalance was caused by a bona fide force majeure event as defined in Section 18.

 

(c)

In the event Shipper, or any other individual or entity receiving or delivering

gas on behalf of, as an assignee of, or otherwise for the benefit of Shipper,

does not (i) provide the schedules, allocations, or other data required by this

Section or other Sections of this Tariff.

 

(d)

Transporter may waive its right to collect all or any portion of the penalties

assessed against Shipper, provided that any such waiver is granted in

a nondiscriminatory manner.

 

(e)

Any disputes between Transporter and Shipper concerning Shipper's

scheduled or actual quantities delivered or received (imbalance disputes),

shall be subject to the complaint procedures, as set forth in Section 26

(Complaint Procedure) of the Tariff's General Terms and Conditions.

 

20.5 Penalty Crediting Mechanism

(a)

The purpose of this provision is to provide the mechanism by which Transporter shall

credit any "Affiliate Penalty Revenues", as defined herein, to "Unaffiliated

Shippers".

 

(b)

The term "Penalty Revenues" shall mean penalty amounts assessed and actually,

net of Transporter's costs, collected during a contract year (November 1 - October

31) pursuant to the penalty provisions of this Tariff. The term "Non-Penalized

Shippers" shall apply to all Shippers, other than Shippers that were assessed

penalties during a contract year (November 1 - October 31) pursuant to the penalty