GENERAL TERMS AND CONDITIONS

(continued)


 


 

25. PENALTY REVENUE SHARING


 

For each Month during each calendar year, Pipeline shall determine (a) each

Shipper that has not incurred in that Month any of the penalties for

unauthorized overruns or underdeliveries, failures to abide by an OFO or

curtailment order and other misconduct (a "Non-Offending Shipper"), and (b)

the penalty revenue net of costs collected by Pipeline during those Months

in which there was a Non-Offending Shipper. Within 120 days after the end

of each calendar year, Pipeline shall distribute such penalty revenue net

of costs to Non-Offending Shippers on Pipeline's system. Only costs

incurred as a result of a Shipper's unauthorized overrun or

underdeliveries, failure to abide by an OFO and other misconduct and from

the transactions that gave rise to the penalty amounts shall be deducted

from the penalty revenue. Pipeline will refund such penalty revenue net of

costs for a Month to a Non-Offending Shipper in such Month in proportion to

the Non-Offending Shipper's use of Pipeline's system relative to the use of

Pipeline's system by all Non-Offending Shippers during such Month. If such

penalty revenue net of costs for a calendar year, plus any amounts carried

over from prior years, is less than Four Hundred Thousand Dollars

($400,000), then Pipeline may carry such balance of revenue forward to the

next calendar year.