Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 09/01/2007, Docket: RP07-558-000, Status: Effective

Third Revised Sheet No. 238 Third Revised Sheet No. 238 : Effective

Superseding: Second Revised Sheet No. 238

GENERAL TERMS AND CONDITIONS

(continued)

 

8. CURTAILMENT

 

8.1 Pipeline shall have the right to curtail or discontinue transportation

services, in whole or in part, on all or a portion of its system at any

time for reasons of Force Majeure or when, in Pipeline's sole judgment,

capacity or operating conditions so require or it is desirable or

necessary to make modifications, repairs or operating changes to its

system. Pipeline shall provide Customer such notice of the curtailment

as is reasonable under the circumstances. Pipeline shall have the

unqualified right to interrupt transportation services at any time under

Pipeline's interruptible Rate Schedules subject to scheduling requirement

in Section 5.3(d) of the GT&C to provide service under Pipeline's firm

Rate Schedules.

 

8.2 In the event that service is interrupted or curtailed then Pipeline shall

reduce each Customer's scheduled service in the following order:

 

(a) First, Pipeline shall curtail scheduled service under Pipeline's

Rate Schedule MNPAL based on net present value, with the

transaction yielding the highest net present value receiving

priority over transactions yielding a lower net present value. Net

present value shall be calculated on the basis of the present value

of the daily MNPAL charge per Dth to Pipeline for the term of the

transaction. MNPAL transactions yielding the same net present

value shall be scheduled pro rata based on scheduled quantities.

In making the determination of net present value, Pipeline shall

apply the rate, as of the date of the review, stated in accordance

with Section 154.501(d) of the Commission's regulations, to all

bids; and

 

(b) Second, Pipeline shall curtail scheduled service for the resolution

of imbalances in the order of the unit rate at which the service is

being performed, beginning with the unit rate that represents the

lowest percentage of the maximum applicable rate. Pipeline shall

allocate capacity among Customers paying the same rate pro rata on

the basis of scheduled quantities;

 

(c) Third, Pipeline shall curtail scheduled service to those Customers

receiving interruptible service, excluding park and loan service,

in the order of the unit rate at which the service is being

performed, beginning with the unit rate that represents the lowest

percentage of the maximum applicable recourse rate, subject only to

the election of another Customer that is paying a discounted rate

to pay the applicable maximum rate in order to afford its scheduled

quantities a higher priority for the purposes of Section 8.2, and

Customer may make such election to pay the maximum recourse rate

when it submits its nomination in accordance with Section 5 of the

GT&C and, if payment of such higher rate is necessary to avoid

interruption or curtailment under this Section 8.2, Customer shall

pay the higher rate in accordance with such nomination. Pipeline

shall allocate capacity among Customers paying the same rate pro

rata on the basis of scheduled quantities; and

 

(d) Fourth, Pipeline shall curtail scheduled service to Customers'

receiving service under the firm rate schedules pro rata on the

basis of scheduled quantities.

 

(e) To the extent that lateral line service is dependent on Pipeline's

mainline service and mainline service is curtailed or discontinued,

Pipeline will curtail or discontinue lateral line service in the

same quantity as the related mainline service.