MidContinent Express Pipeline LLC

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

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

Original Sheet No. 157 Original Sheet No. 157

 

GENERAL TERMS AND CONDITIONS

----------------------------

 

9.3 PENALTY REVENUE

 

Except as provided in subsection (c) of this Section

9.3, all amounts collected by MEP for penalties, commencing with the

Commencement Date, shall be determined for each annual period ending

December 31 and distributed, through a credit to current billings

wherever feasible, within ninety (90) days after each December 31

(the initial period shall be the partial annual period commencing

with the Commencement Date and ending on the ensuing December 31).

For purposes of this subsection, penalties shall include Unauthorized

Gas Charges, Balancing Service Charges and charges for failure to

comply with an Operational Flow Order (including during a Critical

Time). Such distribution shall be made as follows:

 

(a) These amounts shall be used first to compensate

MEP for any cashout expenses and for any extraordinary out-of-pocket

costs it has incurred (including any compensation MEP agreed to

provide for voluntary actions) to alleviate the conditions created by

the violation or which resulted in the issuance of an Operational

Flow Order or the declaration of Critical Time or other operational

action taken by MEP under Section 31 of these General Terms and

Conditions. Costs that may be netted against penalty revenue may

include only actual, verifiable and prudent incremental costs

incurred to resolve the reliability concerns actually caused by the

particular party or parties against which the penalty has been

assessed and must relate to a circumstance which resulted in the

penalty revenue to be credited under this provision. If these

amounts are not adequate to reimburse MEP for its expenses, such

unreimbursed expenses shall be carried forward to future annual

periods until recouped.

 

(b) (1) Any remaining amounts will be refunded pro

rata to all Shippers, except as provided below, through a credit to

current billing wherever feasible, based on each Shipper's total of

the MDQs for Zone 1 and for Zone 2 under FTS Agreements, plus

nominated and confirmed volumes under Rate Schedule ITS, plus the

volume of gas parked or loaned each month under each PALS Agreement,

and the confirmed daily access request volume for Rate Schedule IBS

in total for Zone 1 and for Zone 2 (relative to the total of such

volumes for all Shippers); provided, however, that such calculation

shall exclude volumes for any Shipper during any Month in which such

Shipper incurred Unauthorized Gas Charges and/or failed to comply

with an Operational Flow Order. In the event that for any Month, no