Quest Pipelines (Kpc)

Second Revised Volume No. 1

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Effective Date: 02/01/2008, Docket: RP08-174-000, Status: Effective

Original Sheet No. 138 Original Sheet No. 138 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

9.5 Curtailment Compliance

(a) Without regard to any other remedy provided by law or by the

provisions hereof, KPC shall be entitled to seek an order

from the Commission or any other appropriate tribunal

requiring compliance with curtailment or interruption

ordered by KPC in compliance with this Section 9 or any

directive from any governmental authority having

jurisdiction in the premises.

(b) All volumes received and/or taken in violation of KPC's

curtailment or interruption orders, which deviates from the

quantities set by KPC in the notice of curtailment by more

than three percent (3%) on any day, shall constitute

unauthorized receipts or deliveries of Gas for which a

charge of:

(1) the greater of $5 or two times the daily spot price,

as defined in Section 1.6, for each Dt which exceeds

authorized delivery levels by more than 3% through 10%

(2) the greater of $10 or three times the daily spot

price, as defined in Section 1.6, for each Dt which

exceeds authorized delivery levels by more than 10%

through 15%

(3) the greater of $15 or four times the daily spot price,

as defined in Section 1.6,for each Dt which exceeds

authorized delivery levels by more than 15% shall be

assessed in addition to any other applicable rate,

charge or penalty. Such charge shall be applicable to

all such unauthorized receipts and deliveries

following notification of curtailment or interruption

pursuant to Section 9.6, below, which may be given by

telephone, confirmed by facsimile transmission or any

other reasonable means.

(c) During each 12 month period, beginning on the effective date

of this Section 9, KPC shall refund any net revenue received

from the operation of Section 9.5(b). Such refund of net

revenue will be pro rated on a monthly basis to each non-

offending Shipper during each month that the curtailment was

in effect. If KPC incurs a net cost during such 12-month

period, the amount will be deferred to offset against

revenue in the applicable 12-month period. Carrying costs

shall be calculated on the net balance each month (either

net revenue or net cost) utilizing the rate set forth in

Section 154.501 of the Commission's regulations.

9.6 Situation Reports, Notices and Indemnification

(a) KPC shall provide Shipper with notice of curtailment or

interruption at a time and in a manner that is reasonable

under then existing conditions, and