Cimarron River Pipeline, LLC

Original Volume No. 1

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Effective Date: 09/01/2008, Docket: CP08-17-001, Status: Effective

Original Sheet No. 266 Original Sheet No. 266

 

GENERAL TERMS AND CONDITIONS

 

15. UNAUTHORIZED OVERRUNS AND OPERATIONAL FLOW ORDERS

 

15.1 Unauthorized Overrun Penalty:

 

(a) If on any Day during the month Shipper takes quantities of gas in

excess of the MDQ as stated in the TSA and the excess quantity has not been

scheduled by Transporter, in addition to the Authorized Overrun Rate stated

in the applicable Rate Schedule, Shipper shall be subject to an Unauthorized

Overrun Penalty of two times the daily price published in Gas Daily, Daily

Price Survey, Panhandle-TX-Okla. for the Day (Saturday and Sunday shall be

the succeeding Business Day's price) that Unauthorized Overrun Penalties are

incurred for each Dth taken in excess of the MDQ. The month's quantities of

gas subject to an Unauthorized Overrun Penalty shall be the sum of the

excess quantity Days' Unauthorized Overrun Penalty volumes.

 

(b) For purposes of calculating the quantity of gas subject to the

Unauthorized Overrun Penalty under this Section, a Shipper shall be

permitted to aggregate the MDQs of its FT TSAs at one designated Delivery

Point.

 

(c) Transporter will use the quality specifications, including Btu

measurements, shown at the meter with no retroactive adjustment applied in

determining the Unauthorized Overrun Penalty provided for in this Section

15.1.

 

15.2 Operational Flow Order: Transporter shall have the right to

issue operational flow orders ("OFOs") as stated in this Section. An OFO is

an order issued to alleviate conditions which, inter alia, threaten or could

threaten safe operations or the system integrity of Transporter's system or

that allow Transporter to maintain operations required to provide efficient

and reliable firm service. Whenever Transporter experiences these

conditions, any pertinent order, including an Action Alert or Balancing

Alert, shall be called an OFO.

 

15.3 Preliminary Notifications/Follow-up Reports: Transporter shall

provide, via posting on Transporter's Internet Website, prior notice to all

affected Shippers ("OFO Recipients") of upcoming system events that may

necessitate the issuance of an OFO. Transporter shall provide, via posting

on Transporter's Internet Website, a written report that details the

underlying causes that warranted the issuance of the OFO and explains why

the actions required by the OFO were necessary to alleviate the identified

problems.