GENERAL TERMS AND CONDITIONS

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(d) If an Alert Mode Notice indicates that an OFO may be

imminent, Pipeline will advise what action is requested and

what future actions may be mandated if voluntary steps are

not taken. Under such circumstances, Shippers are asked to

comply as quickly as possible with the Alert Mode Notice to

reduce the need for further action by Pipeline. Shippers

should be prepared to act on short notice. The Alert Mode

Notice may be directed to all Shippers or to specific

Shippers on a not unduly discriminatory basis. By issuing

an Alert Mode Notice, Pipeline shall not be precluded from

issuing further OFO notices if circumstances ultimately

require. The Alert Mode Notice is intended to provide

Shippers the opportunity for voluntary compliance, rather

than requiring mandatory action under the OFO provisions of

the Pipeline's Tariff. If voluntary compliance does not

resolve the circumstances causing the Alert Mode Notice,

Pipeline has the discretion to implement a Critical Mode

Notice on the Shipper(s) or to curtail the Shipper(s)

causing or contributing to the condition.


 

9.3 OFO Penalties. To the extent Pipeline issues an OFO (other than an

Alert Mode Notice) and the Shipper(s) does not comply with such

order, Pipeline will assess and Shipper will be obligated to pay

Pipeline the higher of $20.00 per Dth or two times the cost of gas.

The cost of gas shall be the Daily Gas Index Price for the higher

of: (a) the Gas Day of receipt and delivery, (b) the Gas Day

preceding receipt or delivery, or (c) the Gas Day following receipt

and delivery, as applicable. Such fee will be assessed on each Dth

of gas received into or delivered out of Pipeline's system when such

receipts and/or deliveries are not in compliance with any OFO in

effect. If the OFO penalty is imposed, no curtailment penalty under

GT&Cs Section 10.4, no unauthorized daily overdelivery penalty under

GT&Cs Section 7.7, no unauthorized daily underdelivery penalty under

GT&Cs Section 7.8, and no scheduling penalty under GT&Cs Section

7.9, will also be imposed for the same infraction. Also, multiple

OFO penalties will not be assessed for the same infraction. All OFO

penalties collected by Pipeline for the Month(s) in which such

penalties were incurred shall be accounted for