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. 268 Original Sheet No. 268

 

GENERAL TERMS AND CONDITIONS

 

(b) Requested Actions: Upon issuance of an Action Alert, Transporter

may request that a Shipper take any of the following actions, or similar

actions, to the extent they will alleviate the situation:

 

(i) increase, up to Shipper's MDRQ, or decrease deliveries of

gas into the system at specified Receipt Points; or

 

(ii) bring the nominations across all Delivery Points or, if

necessary, at specified Delivery Points within designated

balancing tolerances.

 

15.7 Balancing Alerts:

 

If in Transporter's judgment the Action Alerts under Section 15.6 are not

sufficient to address the situation fully, or under circumstances in which

the operational integrity of the system is more severely threatened,

Transporter may issue Balancing Alerts.

 

(a) Issuance of Alerts: Balancing Alerts will be noticed in accord

with the procedures stated in Section 15.5 and will be issued a minimum of

eight hours prior to the required action by the Shipper.

 

(b) Required Actions: Balancing Alerts may be issued through any of

the following, or similar actions:

 

(i) curtailment of interruptible services;

 

(ii) adjustments of transportation volumes such that their

receipt and/or delivery flow equals their scheduled quantities.

 

15.8 Shipper Compliance: A Shipper must comply with an Action Alert

and a Balancing Alert (each of which is an OFO) within the period stated,

including seeking waivers of any contractual limits with third parties or

modifications of operating conditions on third party systems.

 

15.9 Penalties: If a Shipper fails to comply with an Action Alert, it

shall be subject to a penalty of $10.00 per Dth for any volume of gas by

which it deviated from the requirements of the Action Alert. If a Shipper

fails to comply with a Balancing Alert, it will be subject to a penalty of

$25.00 for each Dth of gas by which it deviated from the requirements of the

Balancing Alert. A Shipper shall not incur any penalties, including an

Imbalance Penalty, if the penalties would not have been incurred but for

Shipper's compliance with an Action Alert or Balancing Alert, including any

preliminary action taken by Shipper in response to a warning issued by

Transporter in advance of an Action Alert. A Shipper shall not incur any

penalties if the Action or Balancing Alert was necessitated exclusively by

Transporter's negligence or willful misconduct.