Petal Gas Storage Company

Original Volume No. 1

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Effective Date: 10/01/2002, Docket: RP02-435-000, Status: Pending

First Revised Sheet No. 133 First Revised Sheet No. 133 : Pending

Superseding: Alternate Original Sheet No. 133






(e) Notice: NAESB Standard 5.3.34 (Version 1.5) states: Transportation

Service Providers should provide affected parties with notification of

intraday bumps, operational flow orders and other critical notices

through the affected party's choice of Electronic Notice Delivery

mechanism(s). NAESB Standard 5.2.2 (Version 1.5) states: "Electronic

Notice Delivery" is the term used to describe the delivery of notices

via Internet E-mail and/or EDI/EDM. Pursuant to NAESB Standards 5.3.34

and 5.2.2, Petal shall issue notice of all OFOs to the affected Customer

via e-mail or EDI/EDM, at the Customer's election, provided that

Customer has provided Petal with an Internet E-mail address for such

notices. In addition, Petal shall notify the affected Customer of

issuance of an OFO via telephone. All OFO notices shall be subsequently

posted on Petal's Internet website. The OFO will set forth (1) the time

and date of issuance; (2) the actions Customer is required to take; (3)

the time by which Customer must be in compliance with the OFO; (4) the

anticipated duration of the OFO; and (5) any other terms that Petal may

reasonably require to ensure the effectiveness of the OFO. Each

Customer must designate one or more persons, but not more than 3

persons, for Petal to contact on operating matters at any time, on a 24-

hour a day, 365-day a year basis. Such contact persons must have

adequate authority and expertise to deal with such operating matters.

If Petal cannot contact any Customer because that party has failed to

designate a contact person or Customer's contact person is unavailable,

Petal shall not be responsible for any consequences that could have been

prevented by communication. Petal, however, will make reasonable

continuing efforts to notify the affected Customer.


(f) Customer Compliance: A Customer must comply with an OFO within the time

period set forth therein unless the Customer is able to demonstrate that

such compliance (1) is not within the Customer's physical control or

capability; (2) is prevented by operating conditions on a third party

system that are beyond the Customer's control; (3) is precluded by

contractual restrictions or the lack of any contract at all with persons

other than Petal; and/or (4) is prevented due to a force majeure event

as defined in Section 17 of Petal's General Terms and Conditions. The

Customer shall make a good faith effort to comply with any such OFO,

including seeking waivers of any contractual limits with third parties

or modifications of operating conditions on third party systems.

Customer shall notify Petal immediately if it believes that it is

excused from compliance with the OFO for any of the above stated reasons

and shall provide Petal with documentation sufficient to support its

basis for non-compliance.


(g) Penalties: If a Customer fails to comply with an OFO for any reason

other than force majeure on an upstream or downstream pipeline, such

Customer shall be: (a) liable for any damages, including, but not

limited to direct, consequential, exemplary or punitive damages incurred

by Petal or any other affected party as a result of such failure; and

(b) subject to the following penalty for each MMBtu of gas associated

with the quantity of gas that does not comply with such OFO: