W T G Hugoton, LP

Original Volume No. 1

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Effective Date: 08/01/2007, Docket: CP06- 90-002, Status: Effective

Original Sheet No. 225 Original Sheet No. 225 : Effective

 

GENERAL TERMS AND CONDITIONS

 

19.3 Curtailment: If, on any day, WTG Hugoton determines that the capacity

of its system, or any portion thereof, is insufficient to serve all Shippers

that are scheduled to receive service on such day, capacity that requires

allocation shall be allocated in a manner that results in curtailment of

capacity, to zero if necessary, in reverse of the order listed in Section

19.1. If interruptible transportation must be allocated, such transportation

will be curtailed according to the price being paid, with lower priced

transportation being curtailed before higher priced transportation; provided

that any Shipper paying above the maximum IT rate shall be deemed to be paying

the maximum applicable rate.

 

Any interruptible Shipper paying a discounted rate, if subject to

curtailment, may elect to pay a higher rate or the maximum rate to avoid or

reduce the possibility of curtailment. If Shipper so elects, then curtailment

shall be in accordance with this Section 19, whichever is appropriate. If two

or more Shippers are paying the same discounted rate, then the curtailment

shall be prorated based on the requested daily volumes. Firm shippers shall

be interrupted prorata based on their contracted-for demand. Nothing in this

provision shall limit WTG Hugoton(s right to interrupt service on any other

reasonable basis (including prorata curtailment within a class of service) in

order to insure system integrity.

 

19.4 WTG Hugoton shall provide Shippers five days notice of any curtailment,

or as much notice as possible, in order to permit Shipper to make the election

available under Section 19.3. Such notice shall state the discounted rates

being paid by other Shippers, the quantities being transported at such rates

and the estimated reduced quantities of gas that can be transported. Daily

operational allocations shall be reported within one business day after the

end of the gas day within which the gas has been allocated. If the best

available data for reporting daily operational allocation is the Scheduled

Quantity, that quantity shall be used for the daily operational allocation.

 

19.5 Upstream or downstream curtailment: If receipts or deliveries of

Shipper(s gas are curtailed either upstream or downstream of the WTG Hugoton

system, transportation by WTG Hugoton shall likewise be curtailed or

interrupted and Shipper will be responsible for arranging adjustments of

transportation quantities on all upstream or downstream entities.