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. 31 Fifth Revised Sheet No. 31

Superseding: Substitute Fourth Revised Sheet No. 31

 

Rate Schedule FT-2

Firm Transportation Service

(Continued)

 

 

discriminatory basis. The rates for service under this Rate Schedule

shall not be discounted below the applicable minimum rates specified on

the currently effective Sheet No. 10. HIOS shall not be obligated to

discount its services in order to provide service to Shipper hereunder.

 

4.5 Partial Month's Service. If at the commencement or termination of the

Transportation Agreement, service is provided for only a portion of a

month, then the Reservation Charge for such month shall be reduced

proportionately based on the ratio of the number of days that

transportation service was not in effect to the total number of days

in such month.

 

4.6 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 (1) the products of the volumes

of gas expressed in Dth received by HIOS from Shipper, at each Point of

Receipt set forth in Exhibits A and 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, and (2) the products of the volumes expressed in Dth

received by HIOS from Shipper.

 

4.7 Unauthorized Overrun. HIOS shall notify Shipper orally 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' oral 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' oral notification. Such

penalty