Bobcat Gas Storage

Original Volume No. 1

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Effective Date: 10/15/2008, Docket: RP08-608-000, Status: Effective

Original Sheet No. 82 Original Sheet No. 82

GENERAL TERMS AND CONDITIONS

(Continued)

5. PRIORITY, INTERRUPTION OF SERVICE, AND OPERATIONAL FLOW ORDERS

(Continued)

5.5 Action Alerts and Operational Flow Orders (Continued)

(i) Penalties (Continued)

Any penalty revenue collected by Bobcat pursuant to this

Section 5.5(i) shall be credited to those Firm and

Interruptible Customers that did not incur Action Alert or

OFO penalties pursuant to this Section 5.5(i) in the Month

for which Action Alert or OFO penalty revenues were received

("Non-Offending Customers"), based on the ratio of the total

charges paid during that Month by the Non-Offending Customer

to the sum of the total charges paid during that Month by

all Non-Offending Customers. Such credits shall be

calculated for each Month of the twelve (12) Month period

ending July 31 of each year, and will be included on the

Non-Offending Customer's invoice for the Month following the

date of the final Commission order approving Bobcat's

penalty disbursement report; provided, however, that Bobcat

will calculate and include such credits on Non-Offending

Customer's invoices for a period shorter than twelve Months

in the event and to the extent that the total accumulated

amount of Action Alert or OFO penalty revenue collected

pursuant to this Section 5.5(i) by Bobcat as of the end of

any Month exceeds $1,000,000. Bobcat will file with the

Commission a penalty disbursement report within sixty days

of July 31 or sixty days after the end of the Month for

which revenue collected exceeds $1,000,000. Any penalty

revenue credited to Non-Offending Customers pursuant to this

Section shall include interest calculated in accordance with

Section 154.501(d) of the Commission's regulations.

(j) Liability of Bobcat: Bobcat shall not be liable for any

costs incurred by any Customer or point operator in

complying with an Action Alert or OFO. Bobcat shall not be

responsible for any damages that result from any

interruption in service that is a result of a Customer's or

point operator's failure to comply promptly and fully with

an Action Alert or OFO, and the non-complying Customer or

point operator shall indemnify Bobcat against any claims of

responsibility. However, Bobcat shall use reasonable

efforts to minimize any such costs or damages.