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. 245 Original Sheet No. 245 : Effective

 

GENERAL TERMS AND CONDITIONS

 

27. RECEIPT POINT SCHEDULING PENALTIES

 

27.1 If, at month's end, the sum of the actual daily quantities of natural

gas received by WTG Hugoton at all Points of Receipt for each Shipper's

Service Agreement(s) varies from the sum of the quantities scheduled under

each service agreement during the respective month for transportation at all

Points of Receipt, (either + or -) by greater than ten percent (10%), then WTG

Hugoton shall impose on a non-discriminatory basis a penalty equal to the IT

rate per dekatherm for the difference between the sum of the actual total

receipts during the month and the sum of the quantities scheduled for receipt

during the respective month, less the tolerance level, except as provided

below. Points in each Shipper's Service Agreement(s) may be aggregated for

purposes of determining this penalty. WTG Hugoton's mainline system refers to

facilities which directly connect to, or are located on, WTG Hugoton's

mainline transmission system. Any penalty calculated that is less than one

hundred dollars ($100) will be waived.

 

27.2 Shipper's actual and scheduled volumes, at points connected to WTG

Hugoton's mainline system, shall be aggregated at the Shipper level prior to

determining variance.

 

27.3 In order to protect system integrity, WTG Hugoton may, after giving

shippers forty-eight hours notice, implement the penalty on a system level, or

a specific Point of Receipt. For purposes of this Section, "system level"

shall mean any combination of two (2) or more compressor stations in the same

geographical area. The monthly penalty will then apply at those designated

point(s) for the remainder of the billing month, unless system integrity is no

longer in jeopardy. Upon such determination, WTG Hugoton will so notify

Shippers and the penalty shall again apply on a Service Agreement basis from

the date of such notice.

 

27.4 WTG Hugoton shall waive such penalty or portion thereof if such penalty

was the result of a Force Majeure condition on WTG Hugoton's system or WTG

Hugoton determines that it incorrectly scheduled the volumes. A force majeure

situation not on WTG Hugoton's system will not relieve Shipper of scheduling

penalties except as set forth below. Written notification to WTG Hugoton

within forty-eight (48) hours (or as promptly as possible) of a verifiable

force majeure on an upstream pipeline will result in waiver of the scheduling

penalty for those volumes within such forty-eight (48) hour period. Any

waiver will be applied on a nondiscriminatory basis.