GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
18. OPERATIONAL FLOW ORDERS ("OFO") (Continued)
18.6 In the event Shipper does not respond to the OFO and NBP believes
it is necessary to take actions such as buying or selling gas to
maintain system integrity or to prevent interrupting service to
another Shipper, NBP shall have the right, but not the obligation,
to take such remedial actions as it deems necessary. If NBP takes
these actions, it shall be made whole by the nonresponding Shipper
for all costs that NBP incurs either through retention of penalty
revenues or by direct reimbursement by Shipper. NBP shall not be
liable for any costs incurred by any Shipper/Operator in complying
with an OFO.
18.7 NBP shall not be responsible for any damages that result from any
interruption in Shipper's service that is a result of a Shipper's
failure to comply promptly and fully with an OFO and the non-
complying Shipper(s) shall indemnify NBP against any claims of
responsibility.
18.8 Notwithstanding the foregoing, when Gas supplies necessary to
effectuate transportation deliveries are not flowing on the
system, NBP will not be responsible for backing up such supplies
and the associated deliveries will be subject to interruption.
18.9 Where a nomination is required by NBP to make an effective
physical change necessary to comply with an OFO, unless critical
circumstances dictate otherwise, an OFO penalty should not be
assessed unless the Shipper is given the opportunity to correct
the circumstance giving rise to the OFO and fails to do so, or the
action(s) taken fails to do so. The opportunity to correct the
critical circumstance should include the opportunity to:
(a) make a nomination, which, once confirmed and scheduled would
cure the circumstance giving rise to the OFO, or
(b) take other appropriate action which cures the circumstance
giving rise to the OFO.
A Shipper's response to an OFO should not be constrained by
restrictions on the submittal and processing of intra-day
nominations.
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Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: June 6, 2002 Effective on: August 12, 2002
Filed to comply with order of the Federal Energy Regulatory Commission, Docket
No. CP01-22-000, et al., issued May 18, 2001, 95 FERC ¶ 61,259 |