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. 158 Original Sheet No. 158

 

GENERAL TERMS AND CONDITIONS

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penalty revenues are distributed because all Shippers

failed to comply with Operational Flow Orders that Month, then the

amount of penalty revenue for that Month may be held by MEP for

application under Section 9.3(a) for a period of up to two (2) years,

at which time that amount will be included in the amounts for

distribution in the then current annual period to the extent not

offset by costs under Section 9.3(a). The refunds in the prior

sentence shall be calculated on a Monthly basis but distribution of

the credit shall be annual. If the costs to be netted against

penalty revenue exceed the penalty revenue in any Month, the excess

costs may be carried forward to be applied against penalty revenue in

subsequent Months. Thus, while distribution is made annually, the

net penalty revenue credit shall be calculated on a Monthly basis,

subject to the carry forward of costs as stated in the prior

sentence. A Shipper which incurred Unauthorized Gas Charges or which

failed to comply with an Operational Flow Order shall be excluded

from distribution of net penalty revenues only for the Month in which

that violation occurred.

 

(2) Where capacity has been released, any

amounts distributed to the Original Shipper and the calculation and

amounts distributed to the Original Shipper shall be based on the MDQ

and flowing volumes of Gas for that Shipper (without considering any

contracts of Replacement Shippers) during the relevant annual period;

provided, however, that in the case of a permanent release, any

amounts distributed hereunder with respect to the released capacity

shall be distributed to the Replacement Shipper and the calculation

and the amounts distributed to the Replacement Shipper shall be based

on the MDQ and flowing volume for that Replacement Shipper during the

relevant annual period. MEP shall file with the Commission a refund

report for each annual distribution of penalty revenue under this

subsection.

 

(c) Penalty revenue associated with the Leased

Capacity Charges shall not be subject to this Section 9.3 or included

in any calculation hereunder because such revenue is all passed on by

MEP to Enogex.