Stingray Pipeline Company, L. L. C.

Third Revised Volume No. 1

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Effective Date: 11/01/2008, Docket: RP08-436-000, Status: Effective

Seventh Revised Sheet No. 129 Seventh Revised Sheet No. 129

Superseding: Sixth Revised Sheet No. 129

 

GENERAL TERMS AND CONDITIONS

 

 

10. OPERATIONAL FLOW ORDERS

 

10.1 General

 

Each Shipper has the obligation to ensure actual volumes delivered

to Stingray at Receipt Points and actual volumes taken from

Stingray at Delivery Points conform to the volumes nominated by

the Shipper and confirmed by Stingray each Day. Stingray shall

have the right to issue operational flow orders (OFO) as specified

in this section which require actions by one or more Shippers in

order to alleviate conditions which threaten the integrity of

Stingray's pipeline system, maintain pipeline operations at the

pressures required to provide safe, efficient and reliable

transportation service to all Shippers, and maintain Stingray's

pipeline system in balance. Before issuing an OFO, Stingray will

attempt to identify specific Shippers causing a problem and

attempt to remedy those problems with those Shippers. If Stingray

issues an OFO pursuant to this section, Stingray shall not be

required to limit or suspend service to a Shipper(s) whose current

use of Stingray's pipeline system does not aggravate the operating

conditions on which the OFO is based regardless of the class of

service utilized by that Shipper(s). Shipper's response to any

specified Gas quantities provision contained in an OFO shall be

subject to the provisions of Section 10.2 hereof to the extent

that the actual quantities of Gas involved in Shipper's response

to the OFO are greater than or less than the tolerances specified

in the OFO.

 

10.2 OFO Violation Charges

 

All quantities tendered to Stingray and/or taken by Shipper(s) on

a daily basis in violation of Stingray's OFO shall constitute

unauthorized receipts or deliveries for which a charge of $15 per

Dth shall be assessed and paid by Shipper(s).

 

10.3 Exemptions:

 

Shippers will be exempt from penalties on imbalances pursuant to

Section 11 herein that result from complying with an OFO. Shippers

will be allowed to correct OFO created imbalances until the end of

the Month following the Month in which any such imbalance occurs,

based on the then current operations of Stingray's pipeline

system. Upon an OFO becoming effective as specified in the OFO or

as provided in this section 10.3, Shipper or operator of the

facilities connecting with Stingray's facilities shall be

permitted up to the time stated in the OFO, to make adjustments in

compliance with the OFO. If Shipper