FSS RATE SCHEDULE
FIRM STORAGE SERVICE (Cont'd)
(f) The Reservation Charge shall apply as of the date service is deemed to commence by the terms of
Shipper's FSS Service Agreement.
(g) Transporter shall be responsible for any loss, cost, or expense arising from any loss of
Shipper's gas in Transporter's storage that results from Transporter's negligence or failure to exercise due
diligence. Notwithstanding the provisions in Section 22 (Possession of Gas) of the General Terms and
Conditions, Shipper shall be responsible for obtaining its own insurance for any gas in storage, and shall
hold Transporter harmless from any loss, cost, or expense arising from any loss of storage gas that results
from a force majeure event or that is not the result of Transporter's negligence or failure to exercise due
diligence.
7. PENALTIES
(a) If Shipper fails to comply with an interruption order issued by Transporter pursuant to this
Rate Schedule or Section 16 (Interruptions of Service) of the General Terms and Conditions and thereby causes:
(i) Injections in excess of 103 percent of the lowered MDIQ set by Transporter's
interruption order (Lowered Quantity), Shipper shall be assessed and pay penalties based on a price per
Dth equal to three times the midpoint of the range of prices reported for "Columbia Gas, Appalachia" as
published in Platts Gas Daily price survey for all quantities tendered in excess of its Lowered
Quantity; or
(ii) Withdrawals in excess of 103 percent of the lowered MDWQ set by Transporter's
interruption order (Lowered Quantity), Shipper shall be assessed and pay penalties based on a price per
Dth equal to three times the midpoint of the range of prices reported for "Columbia Gas, Appalachia" as
published in Platts Gas Daily price survey for all quantities taken in excess of its Lowered Quantity.
(b) If Shipper fails to comply with an operational flow order issued by Transporter pursuant to
Section 17 (Operational Flow Orders) of the General Terms and Conditions, a penalty based on a price per Dth
equal to three times the midpoint of the range of prices reported for "Columbia Gas, Appalachia" as published
in Platts Gas Daily price survey shall be assessed to Shipper for all quantities in violation of that
operational flow order.
(c) On any Day on which Shipper's injections into storage exceed 110 percent of its applicable MDIQ
as described in Section 3(c) of this Rate Schedule, Shipper shall pay Transporter a penalty of $5.00 per Dth
for all quantities injected in excess of 110 percent of its MDIQ.
(d) In any Month in which Shipper's total monthly injection quantities exceed 105 percent of the
applicable MMIQ as described in Section 3 of this Rate Schedule, Shipper shall pay Transporter a penalty of
$5.00 per Dth for all quantities injected in excess of 105 percent of the applicable MMIQ.
(e) In any Month in which Shipper's net withdrawals from storage exceed the applicable limits set
forth in Section 4 of this Rate Schedule, Shipper shall pay Transporter a penalty of $5.00 per Dth for all
quantities withdrawn in excess of such limits.
(f) If Shipper's injections into storage on any Day exceed its SCQ, Shipper shall pay Transporter a
penalty of $5.00 per Dth for all quantities injected in excess of its SCQ. If Shipper's withdrawals from
storage on any Day result in its FSS account having a negative SCQ balance, Shipper shall pay Transporter a
penalty of $5.00 per Dth.
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