PAL RATE SCHEDULE
PARKING AND LENDING SERVICE
(Continued)
5. OPERATIONAL REQUIREMENTS OF TRANSPORTER
(a) Shipper may be required, upon notification from Transporter, to cease or reduce deliveries to, or
receipts from, Transporter hereunder within the day consistent with Transporter's operating requirements.
Further, Shipper may be required to return loaned quantities or remove parked quantities upon notification by
Transporter via Electronic Notice Delivery. Transporter will not recall from (or require withdrawal by) any
Shipper, on any day, any quantity greater than one-tenth (1/10) of the Shipper's outstanding park or loan
balance, but in no event shall Transporter be restricted when recalling (or requiring the withdrawal of) less
than 5,000 Dth from any Shipper on any day nor will any Shipper be permitted to extend the term of its park or
loan by reason of this limitation. Transporter's notification shall specify the time frame within which
parked quantities shall be removed and/or loaned quantities shall be returned, consistent with Transporter's
operating conditions, but in no event shall the specified time be sooner than the next day after Transporter's
notification, subject to the following conditions:
(i) In the event that Shipper makes a timely and valid nomination, which Transporter subsequently confirms,
in response to notification by Transporter to remove parked quantities and/or return loaned quantities,
Shipper shall be deemed to have complied with Transporter's notification; and
(ii) Unless otherwise agreed by Shipper and Transporter: (1) any parked quantity not removed within a time
frame specified by Transporter's notice shall become the property of Transporter at no cost to Transporter
free and clear of any adverse claims; (2) any loaned quantity not returned within the time frame specified by
Transporter's notice shall be sold to Shipper at 150 percent of the Spot Market Price for each Dekatherm.
"Spot Market Price", for purposes of this Section, shall mean, for each Dekatherm on each applicable day on
which the gas was to be repaid, the "Columbia Gas, Appalachia, Midpoint" price index as published in Gas
Daily's Daily Price Survey, or successor publication.
(b) In the event parked quantities remain in Transporter's system and/or loaned quantities have not been
returned to Transporter's system at the expiration of any Agreement executed by Shipper and Transporter,
Transporter and Shipper may mutually agree to an extended time frame and/or modified terms, including the
rate, of such Agreement. In the event that Shipper and Transporter are unable to come to such Agreement,
Transporter shall notify Shipper, and Shipper shall nominate for removal of the parked quantities and/or
return of the loaned quantities within the time frame specified in Transporter's notice, which in no instance
shall be less than ten (10) days; provided, however, that Transporter shall always have the right to recall up
to 5,000 Dth from Shipper on any day. Any parked quantity not removed within the time frame specified by
Transporter's notice shall become the property of Transporter at no cost to Transporter, free and clear of any
adverse claims. Any loaned quantities not returned within the time frame specified by Transporter's notice
shall be sold to Shipper at 150 percent of the Spot Market Price for each Dekatherm. Transporter shall post
such forfeited quantities on its Internet EBB as gas available for sale to the highest bidder within a 24-hour
notice period. Upon receipt of payment, Transporter shall treat the forfeited gas proceeds as Penalty
Revenues as defined in Section 19.6 of the General Terms and Conditions. If Shipper does not return loaned
quantities within the time frame specified by Transporter's notice, Shipper shall pay Transporter for the cost
of each Dth of the loaned quantity. The payment will be determined by selling the gas to Shipper at 150
percent of the Spot Market Price. "Spot Market Price", for purposes of this Section, shall mean, for each
Dekatherm, on each applicable day on which the gas was to be repaid, the "Columbia Gas, Appalachia, Midpoint"
price index as published in Gas Daily's Daily Price Survey, or successor publication. For purposes of
calculating Penalty Revenues pursuant to Section 19.6 of the General Terms and Conditions, any amount above
100 percent of the Spot Market Price, net of Transporter's costs, will be treated as a penalty revenue to be
credited back to non-offending Shippers.
6. GENERAL TERMS AND CONDITIONS
All of the General Terms and Conditions are applicable to this Rate Schedule and are hereby made a part
hereof, with the exception of Sections 4, 11, 14, 27, 33 through 36, and 38 through 46.
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