GENERAL TERMS AND CONDITIONS

(continued)


 


 

10.8 Shipper shall indemnify Pipeline against and hold Pipeline harmless

from any and all damages, claims, suits, actions or proceedings

whatsoever threatened or initiated as a result of any curtailment or

interruption invoked by Pipeline; which shall include any

curtailment or interruptions described in any part of GT&Cs Section

10; except if such damages, claims, suits, actions or proceedings

are due to Pipeline's gross negligence or willful misconduct.


 

10.9 In the event Pipeline fails to deliver on any one Gas Day at least

98% of the quantity of gas scheduled which Pipeline is obligated to

deliver on a firm basis at such Delivery Point(s) on such Gas Day up

to the MDTQ due to an event that is reasonably within Pipeline's

control, the Reservation Rate of an affected Shipper shall be

decreased by an amount equal to the Reservation Rate on a 100% daily

load factor basis multiplied by the quantity of gas not delivered up

to the lesser of the total quantity of gas scheduled and not

delivered, or the MDTQ. The 100% daily load factor Reservation Rate

shall be decreased in the case of a Service Agreement containing a

discounted Reservation Rate in the same proportion such Reservation

Rate is discounted from the maximum Reservation Rate. In the event

of an interruption in firm service due to maintenance, Force

Majeure, or any other event beyond Pipeline's control, the

Reservation Rate of an affected Shipper shall be decreased in the

same manner above, after the tenth day that Pipeline is prevented

from meeting its delivery obligation.


 

10.10 If Pipeline fails to deliver at least ninety (90%) of Shipper's MDTQ

for a period of twenty-four (24) consecutive months, Shipper shall

have the option to terminate its Service Agreement with no

obligation to pay a termination charge or damages for termination,

or to pay prospective penalties or charges.


 

10.11 If Pipeline fails to deliver all of Shipper's MDTQ for a period of

six (6) consecutive Months, Shipper shall have the option to

terminate its Service Agreement with no obligation to pay a

termination charge or damages for termination, or to pay prospective

penalties or charges; provided that in the event Pipeline's failure

to recommence service during such period is the result of Pipeline's

inability, notwithstanding its diligent efforts, to timely obtain

necessary approvals from any governmental authority having

jurisdiction, then the six (6) Month period specified above shall be

extended day for day to the extent of the time required to secure

such regulatory approval and, once secured, to remedy the situation

with due diligence and all reasonable dispatch, such extension not

to exceed six (6) Months.