Ngo Transmission, Inc.

Original Volume No. 1

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Effective Date: 11/22/2003, Docket: RP04- 67-000, Status: Effective

Original Sheet No. 78 Original Sheet No. 78 : Effective

 

8.4 Shipper Compliance: A Shipper must comply with an OFO within the

time period set forth therein unless the Shipper is able to

demonstrate that such compliance is prevented due to a force

majeure event as defined in Article 15 of these General Terms and

Conditions; provided that the Shipper shall make a good faith

effort to comply with any such OFO, including seeking waivers of

any contractual limits with third parties or modifications of

operating conditions on third party systems. Shipper shall notify

Transporter immediately if it believes that it is excused from

compliance with the OFO for any of the above stated reasons, and

shall provide Transporter with documentation sufficient to support

its basis for non-compliance.

 

8.5 Penalties: If a Shipper fails to comply with an OFO, Transporter

may access a penalty of $10.00 per dth for any volume of gas by

which Shipper deviated from the requirements of the OFO. A Shipper

shall not incur any charges or penalties if such charges or

penalties would not have been incurred but for Shipper's

compliance with an OFO. A Shipper shall not incur any penalties if

the OFO was necessitated exclusively by Transporter's negligence

or willful misconduct.

 

8.6 OFO Penalty Crediting Mechanism: Transporter shall credit any "OFO

Penalty Revenues" as defined herein to "Non-Offending Shippers."

 

(a) The term "OFO Penalty Revenues" shall mean penalty amounts

assessed and actually collected, net of Transporter's costs,

during each month pursuant to Section 8 of this Tariff.

 

(b) The term "Non-Offending Shippers" shall mean Shippers that

were not assessed an OFO penalty during a given month

pursuant to Section 8 of this Tariff.

 

(c) At the end of each month, Transporter shall calculate the

amount of Penalty Revenues, if any. Transporter shall then

allocate Penalty Revenues for that month to the Non-

Offending Shippers based on their actual monthly throughput

for that month under their respective service agreements.

Transporter shall credit the bills of Non-Penalized Shippers

that are the original capacity holders for such allocated

amounts within sixty (60) days of the end of the month.

 

8.7 Liability of Transporter: Transporter shall not be liable for any

costs incurred by any Shipper in complying with an OFO.

Transporter shall not be responsible for any damages that result

from any interruption in Shipper's service that is a result of a

Shipper's failure to comply promptly and fully with an OFO, and

the non-complying Shipper shall indemnify Transporter against any

claims of responsibility.