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.