W T G Hugoton, LP
Original Volume No. 1
Contents / Previous / Next / Main Tariff Index
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.