Sg Resources Mississippi, L.L.C

Original Volume No. 1

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Effective Date: 03/01/2008, Docket: RP08-184-000, Status: Effective

Original Sheet No. 134 Original Sheet No. 134 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(g) OFOs: In the event that, in SGRM's judgment,

immediate action is required to alleviate conditions which

threaten to impair reliable firm service, to maintain operations

at the pressures required to provide efficient and reliable

service, to have adequate Gas supplies in the system to deliver on

demand, to maintain services to all firm Customers and for all

firm services, and/or to maintain the system in balance for the

foregoing purposes, SGRM may forgo the action described in Section

5.5(f) and immediately issue an OFO. In the event that (l)

Customer or point operator does not respond to an Action Alert,

(2) the actions taken thereunder are insufficient to correct the

system problem for which the Action Alert was issued, or (3) there

is insufficient time to carry out the procedures with respect to

Action Alerts, SGRM may issue an OFO pursuant to this Section

5.5(g) or take unilateral action, including the curtailment of

firm service, to maintain the operational integrity of SGRM's

system. For purposes of this Section, the operational integrity

of SGRM's system shall encompass the integrity of the physical

system and the preservation of physical assets and their

performance, the overall operating performance of the entire

physical system as an entity, and the maintenance (on a reliable

and operationally sound basis) of total system deliverability and

the quality of Gas delivered.

 

(h) Termination of an Action Alert or OFO: SGRM shall

lift any effective Action Alert or OFO promptly upon the cessation

of operating conditions that caused the relevant system problem.

After SGRM has lifted the Action Alert or the OFO, SGRM shall post

a notice on its Internet Web Site specifying the factors that

caused the Action Alert or OFO to be issued and then lifted, to

the extent such factors are known. SGRM shall also provide such

notification via e-mail communication to those Customers who have

submitted a request, and provided e-mail address information for

at least one contact person, via SGRM's Internet Web Site to

receive e-mail notification of Critical Notices issued by SGRM.

 

(i) Penalties: All quantities tendered to SGRM and/or

taken by Customer on a daily basis in violation of an Action Alert

or OFO shall constitute unauthorized receipts or deliveries for

which the applicable Action Alert or OFO penalty charge stated

below shall be assessed.

 

(l) Action Alert penalty charge for each Dekatherm of Gas by

which Customer deviated from the requirements of the Action Alert

shall be equal to an Action Alert Index Price, calculated as 110%

of the applicable daily Gas Daily posting for the Florida Gas

Index for the Day on which the deviation occurred, multiplied by

the quantity by which the Customer deviated from the requirements

of the Action Alert.

 

(2) OFO penalty charge for each Dekatherm of Gas by which

Customer deviated from the requirements of the OFO shall be equal

to an OFO Index Price, calculated as three (3) times the

applicable daily Gas Daily posting for the Florida Gas Index for

the Day on which the deviation occurred, multiplied by the

quantity by which the Customer deviated from the requirements of

the OFO.