U-T Offshore System, L.L.C.
Third Revised Volume No. 1
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Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective
First Revised Sheet No. 48 First Revised Sheet No. 48 : Superseded
Superseding: Original Sheet No. 48
GENERAL TERMS AND CONDITIONS
7.8 Scheduling of Transportation and Allocation of Capacity. For each day, U-TOS
will schedule receipts and deliveries of gas on the basis of: (1)
transportation nominations and timely notices of changes made by Shippers or
Shipper's Nominating Agent, which U-TOS is hereby authorized to rely upon in its
schedule; (2) transportation capacity available on U-TOS' system and portions
thereof in light of such nominations and requests; (3) proposed points of
receipt and of delivery; and (4) overall operating conditions from time to time.
U-TOS shall schedule the receipts and deliveries of gas of each Shipper, on each
day, in sequence, from highest to lowest priority, as follows: (1) first, among
U-TOS' firm Rate Schedules T and FT transportation customers, up to each such
customer's Currently Effective Contract Demand or Maximum Daily Quantity, as
applicable; (2) second, according to Section 3 of Rate Schedule I for eligible
shippers having executed a Transportation Agreement for Rate Schedule I service
entitlements prior to April 1, 1989; and (3) third, among U-TOS' Interruptible
Rate Schedule IT transportation customers, up to each such customer's currently
effective Maximum Daily Quantity, as applicable, and all overrun service. In
the event that nominations received in sequencing category (1) exceed the
capacity available to that sequencing category, then the available capacity
shall be allocated pro rata based on nominations. In the event that nominations
received in either sequencing category (2) or (3) above exceed the capacity
available to that individual sequencing category, then the available capacity
shall be allocated within the sequencing category as follows: first, on the
basis of the price paid to U-TOS for the service being nominated, with the
nominated service paying the highest price receiving the highest priority; and
if insufficient capacity still remains, then on the basis of the date of the
service agreement underlying the nomination, with the nomination under the
service agreement having the oldest date receiving the highest priority,
provided that, in the event of a tie in service agreement dates, then pro rata
among the tieing service agreements based on the nominations received under each
of the tieing agreements.
7.9 Receipt Point Priority.
(a) Scheduling of transportation at Primary Points of Receipt shall be in
accordance with subsection 7.8 of this Section 7.
(b) A Shipper under the T or FT Rate Schedule may nominate and schedule
receipts at Secondary Points of Receipt, subject to the priority rights of
T or FT Shippers using such receipt points as Primary Points of Receipt.
Accordingly, the use by a T or FT Shipper of a Secondary Point of Receipt
is interruptible if and to the extent required to serve the T or FT
Shipper for which such receipt point is a Primary Point of Receipt. A
Shipper under the T or FT Rate Schedule, using Secondary Points of
Receipt, shall have a priority over all interruptible Shippers'
utilization of such receipt points.
(c) A T or FT Shipper which desires to utilize a Secondary Point of Receipt
shall, as provided in subsection 7.9(b) above, be entitled to priority
over interruptible Shippers, but may displace the interruptible Shipper(s)
only after providing one (1) business day's notice.
(d) Utilization of Secondary Points of Receipt by a Shipper under the T or FT
Rate Schedule shall not cause any diminution of such Shipper's entitlement
to firm service at Shipper's Primary Points of Receipt.