Curtailment and Operational Flows Orders

Curtailment and Operational Flows Orders

In the event that Company determines in its judgment that it must curtail deliveries of firm services, Company will curtail and/or interrupt firm sales and firm transportation customers based on end-use priority in accordance with the Company’s currently effective curtailment policy, as described in Section III-Service Continuity. Company will compensate Customer for all relinquished gas quantities at the highest of the following prices: (i.) Company’s daily marginal cost of gas, (ii.) Company’s average cost of gas, (iii.) the cost of Customer’s relinquished supply including the variable cost of supply, pipeline variable charges and 100% load factor equivalent of pipeline fixed charges.

The Company may issue an Operational Flow Order requiring delivery of specified volumes of gas in order to maintain operational integrity of the system. An Operational Flow Order may be issued as a blanket order to all transportation customers, or to individual Customers or Aggregation Groups whose actions jeopardize system integrity. Shippers who fail to deliver specified volumes of gas pursuant to an Operational Flow Order shall subject to a penalty of $2.00 per Ccf for all deficient deliveries.