Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 01/01/2003, Docket: RP00-490-002, Status: Effective

Second Revised Sheet No. 81D Second Revised Sheet No. 81D : Effective

Superseding: First Revised Sheet No. 81D

GENERAL TERMS AND CONDITIONS

(continued)

 

22.4 Alert Day

 

A. Transporter shall have the right to declare an Alert Day in the event of

operational distress caused by over-deliveries into Transporter's system which

over-deliveries threaten the integrity or safe operation of the pipeline.

Transporter shall use reasonable efforts to resolve the situation causing the

operational distress prior to declaring an Alert Day. During an Alert Day,

Operator(s) may not deliver volumes of gas into Transporter's system in excess

of the scheduled volumes for that day. Transporter will localize its imposition

of an Alert Day to the smallest affected area necessary to resolve the problem

and to those Operator(s) causing the problem where such Operator(s) may be

identified. Transporter will determine whether it will issue an Alert Day based on

the operating status of the pipeline system using the following criteria: weather

forecast, system conditions-line pack, overall projected pressures at monitored

locations, facility status-horsepower utilization and availability; and overall

send out projections and availability. The Alert Day will be in effect only for

the gas day for which it is issued. If conditions require, new Alert Days will be

issued for subsequent gas days based upon the above stated criteria.

 

B. Transporter shall provide as much notice of the Alert Day declaration as is

reasonably possible, but in any event such notice shall be provided at least

twenty-four (24) hours before the start of the Alert Day. The notice shall

designate the estimated duration of the Alert Day condition and whether it

applies system wide, only in certain affected areas, or only to certain

Operator(s). Transwestern shall provide affected parties with notification of

Alert Days through the Shipper's choice of Electronic Notice Delivery Mechanism.

Unless the affected party and Transwestern have agreed to exclusive notification

via EDI/EDM, the affected party should provide Transwestern with at least one

Internet E-mail address to be used for Electronic Notice Delivery of

notification of Alert Days. The obligation of Transwestern to provide

notification is waived until the above requirement has been met. Transwestern

will support the concurrent sending of electronic notification of Alert Days to

two Internet E-mail addresses for each affected party. Affected parties will

manage internal distribution of notices received by Electronic Notice Delivery.

 

C. If actual volumes exceed scheduled volumes on an Alert Day, a penalty may be

imposed on Operators subject to the Alert Day declaration as follows:

 

(i) For Operator's actual volumes which exceed scheduled volumes by more than

500 MMBtu at a measured receipt point subject to the Alert Day declaration,

and the amount of such variance is greater than four percent (4%) of the

scheduled volume but less than six percent (6%) of the scheduled volume, Operator

shall pay a penalty imposed by Transporter equal to $5.00 per Dth for volumes in

excess of the four percent (4%) but less than the six percent (6%) tolerance level.

 

(ii) For Operator's actual volumes which exceed scheduled volumes by more than

500 MMBtu at a measured receipt point subject to the Alert Day

declaration, and the amount of such variance is equal to or greater than

six percent (6%) of the scheduled volume, Operator shall pay a penalty

imposed by Transporter equal to $10.00 per Dth for volumes equal to or

greater than the six (6%) tolerance level.

 

(iii) For the purpose of calculating penalties in accordance with (i) and (ii)

above, each measured receipt point which is out of tolerance by less than

500 MMBtu shall be excluded.

 

(iv) Such penalty shall not be charged if the variance is caused by a "Force

Majeure" event as defined in Section 11.1 of the General Terms and

Conditions of this Tariff or due to error, omission or request of

Transporter.

 

(v) All penalty revenues collected pursuant to this section will be refunded to shippers annually,

based upon the ratio of each shipper's scheduled throughput to the total system scheduled

throughput.