High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 10/01/2009, Docket: RP09-487-000, Status: Suspended

Fifth Revised Sheet No. 16 Fifth Revised Sheet No. 16

Superseding: Substitute Fourth Revised Sheet No. 16

 

RATE SCHEDULE FT-1

FIRM TRANSPORTATION SERVICE

(Continued)

 

 

4.3 Minimum Monthly Bill. Monthly reservation charge.

 

4.4 Authorized Overrun. In addition to the charges specified above, Shipper

agrees, subject to Section 8 of the General Terms and Conditions, to pay

HIOS an amount equal to the overrun charge determined as follows:

 

The overrun charge shall be the sum of the products of the volumes of gas

expressed in Dth received by HIOS from Shipper, or for the account of

Shipper, at each Point of Receipt set forth in Exhibit A or B of the

Transportation Agreement during any day, which are in excess of the

Maximum Daily Volume (MDV) for such Point of Receipt, and HIOS' effective

Long Haul or Short Haul overrun rate per Dth, as applicable, as set forth

on Sheet No. 10 of this Tariff.

 

4.5 Unauthorized Overrun. HIOS shall notify Shipper verbally of any

unauthorized overrun service that is occurring for Shipper, and shall

immediately confirm such notification by facsimile or similar means. If

unauthorized service occurs on a non-Critical Day, Shipper shall pay HIOS

a penalty of $2.00 per Dth or the current Spot Market Price for the

Offshore Texas region as reported in Natural Gas Week, whichever is

higher, for any such unauthorized daily overrun not terminated within 24

hours of HIOS' verbal notification. If unauthorized service occurs on a

Critical Day, Shipper shall pay HIOS a penalty of $10.00 per Dth or the

current Spot Market Price for the Offshore Texas region as reported in

Natural Gas Week, whichever is higher, for any such unauthorized daily

overrun not terminated within 24 hours of HIOS' verbal notification.

Such penalty payments shall be paid to HIOS in addition to the charges

otherwise payable by Shipper under this or the appropriate Rate Schedule.

HIOS shall credit to non-offending Shippers all unauthorized overrun

penalty revenues received under this section in accordance with Section

27 of the General Terms and Conditions of this Tariff. HIOS may waive,

in whole or in part, any overrun penalty provided for herein if, in HIOS'

sole discretion, such penalty was incurred due to circumstances beyond

Shipper's control.