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. 159 Original Sheet No. 159 : Effective

 

GENERAL TERMS AND CONDITIONS (Continued)

 

(c) 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%

 

For purposes of this Section 12.13,an extreme condition

situation exists on any portion of KPC's system when

throughput approaches capacity, when weather conditions so

require, or when operating pressures on the affected portion

are significantly less than or greater than normal system

operating pressures despite KPC's efforts to maintain normal

pressures, and a further decline or increase in operating

pressures would impair KPC's ability to receive or deliver

Quantities of Gas in accordance with its service

obligations. KPC may declare an extreme condition situation

for the portion of its system affected by the extreme

condition situation by notifying the meter operator(s) and

Shipper(s) through the IEC System and by telephone and

facsimile communication. Once declared, KPC will post

notification of the extreme condition situation on the IEC

System at the commencement of each Day until KPC notifies

the meter operator(s) and the Shipper(s) through the IEC

System and telephone and facsimile communication that the

extreme condition situation has ended. When an extreme

condition situation is declared to become effective at any

time other than the commencement of any Day, Shippers will

use their best efforts to bring deliveries to nominated

levels as soon as possible but in no event later than two

(2) hours, after which the increased Daily Scheduling Charge

provided for in this Section 12.13 shall be applied to

variances in excess of the 3% tolerance level.

 

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 12.13. Such refund

of net revenue will be pro rated on a monthly basis to each

non-offending Shipper during each month that the extreme

condition 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.

 

12.14 Upon termination of firm or interruptible Transportation Service,

Shipper shall reduce to zero any remaining imbalance within Sixty

(60) Days of the date that KPC notifies Shipper of such imbalance.

Such reduction may be accomplished by assigning the imbalance

within MAIQ to another firm or interruptible Service Agreement as

long as such assignment will not result in an imbalance in excess

of MAIQ on the Service Agreement to which the imbalance is

assigned. If Shipper does not reduce the remaining imbalance to