Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 05/23/2003, Docket: RP00-333-003, Status: Effective

First Revised Sheet No. 233 First Revised Sheet No. 233 : Effective

Superseding: Original Sheet No. 233




(e) To the extent that any imbalance directly results from

Shipper's reliance on inaccurate data from Transporter, or is otherwise

caused by Transporter, no penalty will be assessed for that portion of the

imbalance shown by Shipper to be attributable to such inaccurate data.


19.6 Penalty Crediting Mechanism.


(a) The purpose of this provision is to provide the mechanism by

which Transporter shall credit any "Penalty Revenues," as defined herein,

to "Non-Penalized Shippers."


(b) For purposes of this Section 19.6 the following definitions

shall apply:


(i) The term "Penalty Revenues" shall mean penalty

amounts assessed and actually collected, net of Transporter's costs,

during each month of a contract year (November 1 to October 31)

pursuant to the penalty provisions of this Tariff; exclusive of (A)

Transporter's actual gas, transportation and Retainage costs for the

replenishment of gas quantities; and (B) overrun charges imposed

pursuant to the terms of any of Transporter's Rate Schedules.


(ii) The term "Non-Penalized Shippers" shall mean

Shippers, other than Shippers that were assessed penalties and paid

penalties during any month of a contract year (November 1 to October

31) pursuant to the penalty provision of this Tariff, under

Transporter's FT-1 and IT-1 Rate Schedules.


(c) At the end of the contract year, Transporter shall calculate

the amount of Penalty Revenues. Transporter will include interest on the

Penalty Revenues refund balance at the rate specified in the Commission's

Regulations at Section 154.501(d)(1). For each month of the preceding

contract year, Transporter shall allocate Penalty Revenues for that month

to the Non-Penalized Shippers based on their actual monthly throughput for

that month under the Non-Penalized Shippers' FT-1 and IT-1 Service

Agreements. Transporter shall credit the bills of Non-Penalized Shippers

that are the original capacity holders (and not Replacement Shippers under

Section 14 (Release and Assignment of Service Rights) of the General Terms

and Conditions) for such allocated amounts within 60 days of the end of the

contract year. To the extent that there are no Non-Penalized Shippers in a

month in which there are Penalty Revenues, the Penalty Revenues will be

carried forward to the next succeeding month and will be allocated to Non-

Penalized Shippers in that month.