MidContinent Express Pipeline LLC

Original Volume No. 1

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Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective

Original Sheet No. 156 Original Sheet No. 156

 

GENERAL TERMS AND CONDITIONS

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9. OVERRUN AND UNAUTHORIZED GAS CHARGES AND PENALTY REVENUE

 

9.1 AUTHORIZED OVERRUN CHARGES

 

If deliveries to a Shipper exceed its MDQ under an

Agreement but represent volumes properly nominated and confirmed, an

Authorized Overrun Charge shall apply. The applicable maximum

Authorized Overrun Charge for transportation under Rate Schedule FTS

shall be a maximum Authorized Overrun Rate determined as the 100%

load factor derivative of the maximum reservation and commodity

rates, as calculated separately for Zone 1, Zone 2 and Interim Period

Service, respectively. The applicable maximum Authorized Overrun Rate

under Rate Schedule ITS, PALS or IBS shall equal the maximum rate for

Rate Schedule ITS, PALS or IBS (separate rates are set out in this

Tariff for Zone 1, Zone 2 and, in the case of ITS, for Interim Period

Service). The maximum Authorized Overrun Charge under Rate Schedule

ITS, PALS or IBS shall equal the maximum Authorized Overrun Rate

multiplied by the number of Dth of the Authorized Overrun Gas. Such

Authorized Overrun Rates may be discounted on a non-discriminatory

basis to any level between zero and the maximum Authorized Overrun

Rate or may be determined pursuant to a Negotiated Rate or Negotiated

Rate Formula agreement.

 

9.2 UNAUTHORIZED GAS CHARGES

 

In light of Shipper's obligations to remain in balance

under Section 10 of these General Terms and Conditions, to the extent

that Receipt Point or Delivery Point imbalances are not accommodated

under an OBA, an Unauthorized Gas Charge set out herein shall apply

to all volumes tendered by or on behalf of Shipper or taken by or on

behalf of Shipper at any Points in excess of confirmed nominations,

under any Agreement ("unauthorized overrun"). Swings accommodated

under an OBA shall not be subject to a charge under this provision.

If an Unauthorized Gas Charge applies, the Shipper shall pay MEP an

Unauthorized Gas Charge equal to the volume of the Gas the Shipper

delivered in excess of confirmed nominations multiplied by the

Unauthorized Gas Rate. The maximum Unauthorized Gas Rate is the

greater of $10 or 2 times DIP; provided, however, that the

Unauthorized Gas Charge may be discounted to any level between zero

and this maximum rate or may be determined pursuant to a Negotiated

Rate or Negotiated Rate Formula agreement. Any Unauthorized Gas

Charge shall be waived by MEP if the unauthorized overrun does not

cause operational problems.