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. 183 Original Sheet No. 183 : Effective

 

GENERAL TERMS AND CONDITIONS (continued)

 

19. FORCE MAJEURE

 

In the event, to the extent, and for so long as either KPC or Shipper is

unable, by reason of force majeure, to carry out its obligations

hereunder, in whole or in part, the obligations of either KPC or

Shipper, other than to make payment of reservation fees or capacity

charges which shall become due, shall be suspended, in whole or in part,

and neither KPC nor Shipper shall be liable in damages to the other as a

result of Force Majeure. "Force Majeure," as employed herein, shall mean

any cause, whether of the kind herein enumerated or otherwise, not

within the control of either KPC or Shipper claiming suspension, and

which by the exercise of due diligence, either KPC or Shipper has been

unable to prevent or overcome, including without limitation acts of God,

the government, including the issuance of rules or orders which serve to

frustrate or prevent the performance of KPC, or a public enemy; strikes,

lockouts, or other industrial disturbances; wars, blockades, or civil

disturbances of any kind: epidemics, landslides, hurricanes, washouts,

tornadoes, storms, earthquakes, lightning, fires, freezing of, breakage

or accident to, or the necessity for making repairs or alterations to

wells, machinery or lines of pipe; partial or entire failure of wells;

and the inability of either KPC or Shipper to acquire, or the delays on

the part of either KPC or Shipper in acquiring, at reasonable cost and

after the exercise of reasonable diligence: (a) any servitudes, rights

of way grants, permits, or licenses; (b) any materials or supplies for

the construction or maintenance of facilities; or (c) any permits or

permissions from any governmental agency; if such are required to enable

either KPC or Shipper to fulfill its obligations hereunder.

Additionally, KPC shall be excused in whole, or in part, from its

performance for inability to obtain Transportation from or through third

party pipelines. Either KPC or Shipper claiming force majeure shall

give to the other(s) notice and full particulars of such force majeure

by telephone or facsimile as soon as reasonably possible after the

occurrence of the case relied on, and shall remedy such inability to

perform with all reasonable dispatch; provided, however, that such

requirement or remedy shall not require the settlement of strikes or

lockouts by accession to the demands of those opposing either KPC or

Shipper when such course is inadvisable in the discretion of either KPC

or Shipper.

 

In the event of a Force Majeure occurrence, KPC will credit shippers

reservation charge with partial reservation charge credits equal to

KPC's return on equity and taxes equal to the daily equivalent of the

reservation charge multiplied by the number of days of the Force Majeure

event.