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. 158 Original Sheet No. 158 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

KPC may issue any other operational flow order it deems

necessary to protect the integrity of its system. On any

occasion when KPC issues an operational flow order under

this subsection, pursuant to Section 12.12 herein, KPC will

post on the IEC System a detailed description of the

situation which necessitated the issuance of that particular

operational flow order and an estimate of when the OFO will

begin and end.

12.12 (b) The charge for variances beyond the tolerance levels as

stated in the OFO shall be:

(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%

In the event that KPC is unable to provide shippers twenty-four

(24) hours notice of an OFO, KPC shall waive OFO penalties only on

the first day of issuance of an OFO.

During each 12 month period, beginning on the effective date of

this Section 12, KPC shall refund any net revenue received from

the operation of Section 12.12(b). Such refund of net revenue

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

during each month that the OFO 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.

12.13 Extreme Condition

When KPC declares an extreme condition situation as to any portion

of its system, the daily scheduling tolerance level for that

portion of its system shall be reduced from 5% to 3% and the

charge for variances beyond the reduced tolerance level shall be:

(a) 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%

(b) 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%