Stingray Pipeline Company

Third Revised Volume No. 1

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Effective Date: 07/01/2002, Docket: RP00-620-002, Status: Effective

Sixth Revised Sheet No. 129 Sixth Revised Sheet No. 129 : Effective

Superseding: Fifth Revised Sheet No. 129

GENERAL TERMS AND CONDITIONS

10. OPERATIONAL FLOW ORDERS

10.1 General

Each Shipper has the obligation to ensure actual

volumes delivered to Stingray at Receipt Points and

actual volumes taken from Stingray at Delivery Points

conform to the volumes nominated by the Shipper and

confirmed by Stingray each day. Stingray shall have

the right to issue operational flow orders (OFO) as

specified in this section which require actions by one

or more Shippers in order to alleviate conditions which

threaten the integrity of Stingray's pipeline system,

maintain pipeline operations at the pressures required

to provide safe, efficient and reliable transportation

service to all Shippers, and maintain Stingray's

pipeline system in balance. Before issuing an OFO,

Stingray will attempt to identify specific Shippers

causing a problem and attempt to remedy those problems

with those Shippers. If Stingray issues an OFO

pursuant to this section, Stingray shall not be

required to limit or suspend service to a Shipper(s)

whose current use of Stingray's pipeline system does

not aggravate the operating conditions on which the OFO

is based regardless of the class of service utilized by

that Shipper(s). Shipper's response to any specified

gas quantities provision contained in an OFO shall be

subject to the provisions of Section 10.2 hereof to the

extent that the actual quantities of gas involved in

Shipper's response to the OFO are greater than or less

than the tolerances specified in the OFO.

10.2 OFO Violation Charges

All quantities tendered to Stingray and/or taken by

Shipper(s) on a daily basis in violation of Stingray's

OFO shall constitute unauthorized receipts or

deliveries for which a charge of $15 per Dth shall be

assessed and paid by Shipper(s).

10.3 Exemptions:

Shippers will be exempt from penalties on imbalances

pursuant to Section 11 herein that result from

complying with an OFO. Shippers will be allowed to

correct OFO created imbalances until the end of the

month following the month in which any such imbalance

occurs, based on the then current operations of

Stingray's pipeline system. Upon an OFO becoming

effective as specified in the OFO or as provided in

this section 10.3, Shipper or operator of the

facilities connecting with Stingray's facilities shall

be permitted up to the time stated in the OFO, to make

adjustments in compliance with the OFO. If Shipper