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. 226 Original Sheet No. 226 : Effective

 

GENERAL TERMS AND CONDITIONS

 

19.6 In the event gas supply shortages at Delivery Points occur due to

capacity constraints, such shortages shall be handled under the following

procedures:

 

(a) If any Shipper experiences or anticipates a supply emergency which

could cause injury to essential human needs a minimum plant protection, such

Shipper shall utilize to the fullest extent all of Shipper(s existing gas

supply arrangements, including storage inventories and self-help measures, if

available, to alleviate such emergency prior to requesting assistance from WTG

Hugoton and other Shippers pursuant to this Section.

 

(b) Any assistance required to resolve a supply emergency will be

based, to the maximum extent practicable, on voluntary, market-based

arrangements involving a sale of gas by a willing seller to the Shipper

experiencing the emergency shortage, at a rate to be negotiated by the parties

to such sale. Such transaction could involve the pre-arrangement of

portfolios of divertible supply, or short-term arrangements through the use of

WTG Hugoton(s electronic bulletin board or any other arrangement acceptable to

the parties to this sale.

 

19.7 Penalties: If Shipper takes gas in excess of the volume of gas

authorized for delivery on any day that WTG Hugoton has ordered reduced

deliveries, Shipper shall be subject to a penalty for takes of gas in excess

of the authorized volume, without any tolerance. The penalty per dekatherm

shall be equal to two hundred seventy-five percent (275%) of the applicable

monthly Imbalance Index Price. Penalty revenues shall be credited to Shippers

in accordance with Section 45 of the GENERAL TERMS AND CONDITIONS of this

Tariff.

 

19.7 Liability: If WTG Hugoton reduces deliveries pursuant to this Section

19, WTG Hugoton shall not be contractually or otherwise liable to Shipper or

to any other person for any damages whatsoever because of any reductions of

deliveries, provided, however, WTG Hugoton shall give all firm Shippers a full

reservation charge credit for all scheduled volumes not delivered due to a

non-force majeure event, starting at Day 1 of such event. For a force majeure

event on the pipeline, WTG Hugoton will offer full reservation charge credits

for all scheduled volumes not delivered, starting at Day 11.