B-R Pipeline Company

Original Volume No. 1

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Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective

Original Sheet No. 69 Original Sheet No. 69 : Effective







(e) Failure to Comply with OFO. If Shipper (or Shipper's designee or

successor) fails to comply with the terms of an OFO for reasons other

than force majeure such Shipper, its designee or successor shall be

liable for a penalty equal to the greater of twenty-five dollars

($25.00) or four (4) times the highest absolute price at Sumas,

Washington as reflected in the Daily Price Survey published in "Gas

Daily" for each of the days during which a Shipper fails to comply

with an OFO for each Dth of gas that does not comply. Transporter may

in its reasonable judgment waive on a nondiscriminatory basis

penalties due to noncompliance with an issued OFO. No penalties shall

be assessed on Shipper for noncompliance with an issued OFO when such

OFO is due to force majeure invoked

by Transporter.


(f) Penalty Revenue Crediting. Transporter shall credit penalty revenues,

less reasonable administrative and operating costs, received by

Transporter pursuant to Section 13.13(e) during any month. Such

credits will be allocated to all firm and interruptible transportation

customers (collectively, the Specified Customers"), except each

penalty revenue credit shall be allocated only to those customers who

were not assessed any such penalty in the month for which such penalty

revenues are to be credited. The credits will be allocated to the

Specified Customers pro rata in proportion to the revenue (total

revenue, net of credits from capacity releases as described in Section

20 of the General Terms and Conditions, less all surcharges) received

by Transporter from each and all of the Specified Customers for each

applicable month. Such revenue credits shall be reflected as a credit

billing adjustment to the next month's billings rendered after the

applicable month. In the event that such credit billing adjustments

would result in a credit total invoice to any Specified Customer,

Transporter will refund the credit billing adjustment to the Specified

Customer in cash within 15 days after determination of the amount of

the credit due to the Specified Customer.