Horizon Pipeline Company, L.L.C.
Original Volume No. 1
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Effective Date: 11/01/2003, Docket: RP02-153-003, Status: Suspended
First Revised Sheet No. 233 First Revised Sheet No. 233 : Suspended
Superseding: Original Sheet No. 233
GENERAL TERMS AND CONDITIONS
(d) If any Shipper fails to comply with an Operational Flow
Order [other than those described in subsection (e) below] during any
period which is not a Critical Time, it shall be subject to a penalty of
$5.00 per Dth times any volume of gas by which it deviated from the
requirements of the Operational Flow Order. A Shipper shall be exempt from
such a penalty under this Section 34.6 to the extent the Operational Flow
Order requires action beyond Shipper's contract limits under its Agreement
with Horizon or if Shipper has complied within a reasonable range, which
range will be specified in the Operational Flow Order.
(e) In addition to the Operational Flow Orders described in
subsection (a) above, Horizon may issue Operational Flow Orders as follows:
(1) In order to improve system operations, Horizon may
require a Shipper which has a variance of twenty percent (20%) or more
between actual deliveries to Horizon at a Receipt Point and the confirmed
nomination at that Receipt Point to conform the deliveries to the confirmed
nomination as of the day that commences with the effectiveness of the
Operational Flow Order.
(2) Horizon may also require Shippers to keep any
variances between actual flows and confirmed nominations at all of the
Receipt Points or Delivery Points in a Rate Zone under all of a Shipper's
Agreements, which are to the detriment of Horizon's system, within a ten
percent (10%) tolerance. If a Shipper ("Swing Shipper") agrees to keep all
other Shippers at a Delivery Point (or, if applicable, a Central Delivery
Point) whole with their nominations, such other Shippers' confirmed
nominations and actual takes at that point will be included in the total
confirmed nominations and the total actual deliveries of the Swing Shipper
at all Delivery Points in the Rate Zone for purposes of determining the
Swing Shipper's variance.
Shippers that fail to comply with such Operational Flow
Orders described in this subsection (e) shall be subject to a penalty of
$10.00 per Dth outside of a ten percent (10%) tolerance.
(f) A Shipper shall not be subject to overrun penalties and
charges from Horizon or Balancing Service Charges with respect to any
action taken in reasonable conformance with an Operational Flow Order
issued by Horizon during a Critical or non-Critical Time.
(g) Any Receipt or Delivery Point where the variance between
the total confirmed nominations and actual flows is less than 500 Dth per
day or where Horizon does not have either daily metering or access to such
information shall be exempt at all times, including during a Critical Time,
from Operational Flow Orders requiring that gas flows be conformed to
nominations or to some percentage of nominations.