Common use of Operational Flow Order Clause in Contracts

Operational Flow Order. If any of the events described in section 9.1(a) to (g) occur, First Gas may give the Interconnected Party an Operational Flow Order. The Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicable. If the Interconnected Party conveys Gas taken at a Delivery Point to an End-user (or is itself the End-user) who needs a quantity of Gas to shut down its plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party shall notify First Gas of that requirement and of the specific quantity of Gas required. If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be taken. Curtailment of Nominated Quantities Pursuant to section 9.6 and subject to section 9.7, First Gas may curtail each Shipper’s most recent Approved NQ at that Delivery Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party to curtail its take of Gas (or its ability to take Gas) at a Delivery Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulations). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6: First Gas may curtail the Interconnected Party’s take of Gas itself; for the purposes of the definition of “Reasonable and Prudent Operator”, this section 9 and section 16, any such failure shall constitute a failure by the Interconnected Party to act as a Reasonable and Prudent Operator; and

Appears in 2 contracts

Samples: Interconnection Agreement, Interconnection Agreement

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Operational Flow Order. If Subject to section 9.7, iIf any of the events described in section 9.1(a) to (geg) occuroccurs, First Gas may give the Interconnected Party an Operational Flow Order. , which t. The Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicable. If the Interconnected Party conveys Gas taken at a Delivery Point to an End-user (or is itself the End-user) who needs a quantity of Gas to shut down its plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party shall notify First Gas of that requirement and of the specific quantity of Gas requiredrequired (which shall be identical to any profile given to the CCO). If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be taken. Curtailment of Nominated Quantities after OFO Issued Pursuant to section 9.6 and subject to section 9.79.6, First Gas will may curtail each Shipper’s most recent Approved Nominated Quantity NQ at that Delivery Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party shall to curtail its take of Gas (or its ability to take Gas) at a Delivery Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulations). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6OFO: First Gas may curtail the Interconnected Party’s take of Gas itself; and for the purposes of the definition of “Reasonable and Prudent Operator”, this section 9 and section 16, any such failure shall constitute a failure by the Interconnected Party to act the Interconnected Party shall be deemed not to have acted as a Reasonable and Prudent Operator; andand the Interconnected Party shall indemnify First Gas for any Loss incurred by First Gas (except to the extent that First Gas contributed to that Loss and/or did not use reasonable endeavours to mitigate its Loss to the fullest extent reasonably practicable). Relief from Charges In relation to any curtailment under section 9.1(a) to (c) or section 9.2, the Interconnection Fee and the Odorisation Fee (if any) at a Delivery Point (if any) will not be payable for the period of that curtailment to the extent of the reduction in the normal or intended take of Gas, except to the extent that the Interconnected Party: caused or contributed to any event or circumstance giving rise to that curtailment, including in the circumstances referred to in sections 3.4 or 3.5; was itself carrying out maintenance or other work to the extentsuch that its ability to take Gas was (or would have been) reduced to or less than the level of Gas injection that was (or would otherwise have been) available given the curtailment; or failed to comply with an instruction from First Gas under section 9.6 or from the Critical Contingency Operator under section 9.6 or section 9.9. prudential At all times during the term of this Agreement and until the Interconnected Party has paid all outstanding amounts and all amounts payable or which may become payable in the 24 26 Months following expiry or termination of this Agreement, the Interconnected Party must, at its election, comply with one of the following: hold an acceptable credit rating in accordance with section 10.2; or arrange for a third party to provide one or a combination of the following securities (each a Credit Support), for the amount required in accordance with this section 10, provided the party providing the Credit Support maintains an acceptable credit rating in accordance with section 10.2: an unconditional payment guarantee or letter of credit in favour of First Gas; or an unconditional third party payment guarantee in favour of First Gas; or

Appears in 2 contracts

Samples: Interconnection Agreement, Interconnection Agreement

Operational Flow Order. If any of the events described in section 9.1(a) to (g) occur, First Gas may give the Interconnected Party an Operational Flow Order. The Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicable. If the Interconnected Party conveys Gas taken at is a Delivery Point to an End-user (or is itself the End-user) who gas producer and needs a quantity of Gas to shut down its production plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party it shall notify First Gas of that requirement and of the specific quantity of Gas requiredrequired to be injected. If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be takeninjected. Curtailment of Nominated Quantities Pursuant to section 9.6 and subject to section 9.7, First Gas may curtail each Shipper’s most recent Approved NQ at that Delivery Receipt Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party to curtail its take of Gas (or its ability to take Gas) at a Delivery Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulationsso). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6: First Gas may curtail the Interconnected Party’s take injection of Gas itself; for the purposes of the definition of “Reasonable and Prudent Operator”, this section 9 and section 16, any such failure shall constitute a failure by the Interconnected Party to act as a Reasonable and Prudent Operator; and

Appears in 2 contracts

Samples: Interconnection Agreement, Interconnection Agreement

Operational Flow Order. If any of the events described in section 9.1(a) to (geg) occuroccurs, First Gas may give the Interconnected Party an Operational Flow Order. The , which tThe Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicable. If the Interconnected Party conveys Gas taken at is a Delivery Point to an End-user (or is itself the End-user) who gGas producer and needs a quantity of Gas to shut down its production plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party it shall notify First Gas of that requirement and of the specific quantity of Gas requiredrequired to be injected (which shall be identical to any profile given to the CCO). If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be takeninjected. Curtailment of Nominated Quantities Pursuant to section 9.6 and subject to section 9.79.6, First Gas will may curtail each Shipper’s most recent Approved NQ Nominated QuantityNQ at that Delivery Receipt Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party to toshall curtail its take injection of Gas (or its ability to take inject Gas) at a Delivery Receipt Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulationsso). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6OFO: First Gas may curtail the Interconnected Party’s take injection of Gas itself; and the Interconnected Party shall be deemed not to have acted as a for the purposes of the definition of “Reasonable and Prudent Operator”, this section 9 and section 16, any 16¸any such failure shall constitute a failure by the Interconnected Party to act as a Reasonable and Prudent Operator; andand the Interconnected Party shall indemnify First Gas for any Loss incurred by First Gas (except to the extent that First Gas contributed to that Loss and/or did not use reasonable endeavours to mitigate its Loss to the fullest extent reasonably practicable). Relief from Charges In relation to any curtailment under section 9.1(a) to (c) or section 9.2, the Interconnection Fee and the Odorisation Fee (if any) at a Receipt Point will not be payable for the period of that curtailment to the extent of the reduction in the normal or intended injection of Gas, except to the extent that the Interconnected Party: caused or contributed to any event or circumstance giving rise to that curtailment, including in the circumstances referred to in sections 3.34 or 3.45; was itself carrying out maintenance or other work to the extentsuch that its ability to inject Gas was (or would have been) reduced to or less than the level of Gas injection that was (or would otherwise have been) available given the curtailment; or failed to comply with an instruction from First Gas under section 9.6 or from the Critical Contingency Operator under section 9.6 or section 9.9. prudential At all times during the term of this Agreement and until the Interconnected Party has paid all outstanding amounts and all amounts payable or which may become payable in the 264 Months following expiry or termination of this Agreement, the Interconnected Party must, at its election, comply with one of the following: hold an acceptable credit rating in accordance with section 10.2; or arrange for a third party to provide one or a combination of the following securities (each a Credit Support), for the amount required in accordance with this section 10, provided the party providing the Credit Support maintains an acceptable credit rating in accordance with section 10.2: an unconditional payment guarantee or letter of credit in favour of First Gas; or an unconditional third party payment guarantee in favour of First Gas; or

Appears in 2 contracts

Samples: Interconnection Agreement, Interconnection Agreement

Operational Flow Order. If any of the events described in section 9.1(a) to (g) occur, First Gas may give the Interconnected Party an Operational Flow Order. The Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicable. If the Interconnected Party conveys Gas taken at is a Delivery Point to an End-user (or is itself the End-user) who gas producer and needs a quantity of Gas to shut down its production plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party it shall notify First Gas of that requirement and of the specific quantity of Gas requiredrequired to be injected. If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be takeninjected. Curtailment of Nominated Quantities Pursuant to section 9.6 and subject to section 9.79.6, First Gas may curtail each Shipper’s most recent Approved NQ at that Delivery Receipt Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party to curtail its take of Gas (or its ability to take Gas) at a Delivery Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulationsso). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6: First Gas may curtail the Interconnected Party’s take injection of Gas itself; for the purposes of the definition of “Reasonable and Prudent Operator”, this section 9 and section 16, any such failure shall constitute a failure by the Interconnected Party to act as a Reasonable and Prudent Operator; andand the Interconnected Party shall indemnify First Gas for any Loss incurred by First Gas (except to the extent that First Gas contributed to that Loss and/or did not mitigate its Loss to the fullest extent reasonably practicable). Relief from Charges In relation to any curtailment under section 9.1(a) to (c) or section 9.2, the Interconnection Fee and the Odorisation Fee (if any) at a Receipt Point will not be payable for the period of that curtailment to the extent of the reduction in the normal or intended injection of Gas, except to the extent that the Interconnected Party: caused or contributed to any event or circumstance giving rise to that curtailment, including in the circumstances referred to in sections 3.3 or 3.4; was itself carrying out maintenance or other work such that its ability to inject Gas was (or would have been) reduced to or less than the level of Gas injection that was (or would otherwise have been) available given the curtailment; and/or failed to comply with an instruction from First Gas or from the Critical Contingency Operator under section 9.6 or section 9.9. prudential At all times during the term of this Agreement and until the Interconnected Party has paid all outstanding amounts and all amounts payable or which may become payable in the 26 Months following expiry or termination of this Agreement, the Interconnected Party must, at its election, comply with one of the following: hold an acceptable credit rating in accordance with section 10.2; or arrange for a third party to provide one or a combination of the following securities (each a Credit Support), for the amount required in accordance with this section 10, provided the party providing the Credit Support maintains an acceptable credit rating in accordance with section 10.2: an unconditional payment guarantee or letter of credit in favour of First Gas; or an unconditional third party payment guarantee in favour of First Gas; or

Appears in 1 contract

Samples: Interconnection Agreement

Operational Flow Order. If any of the events described in section 9.1(a) to (ge) occuroccurs, First Gas may give the Interconnected Party an Operational Flow Order. The , which the Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicableXXXXX. If the Interconnected Party conveys is a Gas taken at a Delivery Point to an End-user (or is itself the End-user) who producer and needs a quantity of Gas to shut down its production plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party it shall notify First Gas of that requirement and of the specific quantity of Gas required. If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be takeninjected. Curtailment of Nominated Quantities Pursuant to section 9.6 and subject to section 9.79.6, First Gas may will curtail each Shipper’s most recent Approved NQ Nominated Quantity at that Delivery Receipt Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party to shall curtail its take injection of Gas (or its ability to take inject Gas) at a Delivery Receipt Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulations). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6OFO: First Gas may curtail the Interconnected Party’s take injection of Gas itself; for and the purposes of the definition of “Interconnected Party shall be deemed not to have acted as a Reasonable and Prudent Operator”Operator and shall indemnify First Gas for any Loss incurred by First Gas (except to the extent that First Gas contributed to that Loss and/or did not use reasonable endeavours to mitigate its Loss). Relief from Charges In relation to any curtailment under section 9.1(a) to (c) or section 9.2, this the Interconnection Fee and the Odorisation Fee (if any) at a Receipt Point will not be payable for the period of that curtailment to the extent of the reduction in the normal or intended injection of Gas, except to the extent that the Interconnected Party: caused or contributed to any event or circumstance giving rise to that curtailment, including in the circumstances referred to in sections 3.4 or 3.5; was itself carrying out maintenance or other work to the extent that its ability to inject Gas was less than the curtailment; or failed to comply with an instruction from First Gas under section 9 9.6 or from the Critical Contingency Operator under section 9.9. fees and section 16charges OBA Charges To the extent it is an OBA Party, any such failure shall constitute a failure by the Interconnected Party shall be liable for and shall pay to act First Gas: Balancing Gas Charges; and charges for Excess Running Mismatch; (together, XXX Xxxxxxx) determined by First Gas in accordance with the Code. Over-Flow Charge The Interconnected Party shall pay a charge for any Hour in which the metered quantity at a Receipt Point exceeds the Physical MHQ of that Receipt Point (Over-Flow Charge), equal to: Fee × OFQ × 20 where: Fee is First Gas’ highest published fee for Daily Nominated Capacity on the Transmission System (expressed in $/GJ) in the current Year; OFQ, the Over-Flow Quantity, is the greater of: the Hourly metered quantity – Physical MHQ; and zero. Excessive Flow Causing Loss In addition to any Over-Flow Charge and/or amount under section 3.4(a) it may be liable to pay, the Interconnected Party shall indemnify First Gas for any Loss incurred by First Gas that arises from its Over-Flow (where that Loss shall include any Interconnection Fees, Transmission Charges and/or Non-standard Transmission Charges which First Gas may be required to waive or rebate as a result) up to the Capped Amounts. First Gas shall use reasonable endeavours in the circumstances to mitigate its Loss. The Interconnected Party shall: not be relieved of liability under the indemnity in this section 11.12; and be deemed not to have acted as a Reasonable and Prudent Operator, if its Over-Flow result in a Critical Contingency being declared. Credits Receivable as an OBA Party To the extent it is an OBA Party, First Gas will credit the Interconnected Party in accordance with the Code: any Balancing Gas Credits due to it; andand a share of the total Excess Running Mismatch Charges payable by all Receipt Point OBA Parties in respect of the previous Month, equal to: ERMCOBRP × MQIP ÷ ∑MQOBRP where: ERMCOBRP is the aggregate of the charges for Negative ERM and Positive ERM payable by all OBA Parties at Receipt Points that Month; MQIP is the aggregate of the metered quantities for that Month of all Receipt Points under this Agreement at which an OBA applies; and ∑MQOBRP is the aggregate of the metered quantities for that Month of all Receipt Points at which an OBA applies. TERMINATION Termination for cause Either party may terminate this Agreement immediately on notice in writing to the other Party specifying the cause, if: the other Party defaults in the performance of any material covenants or obligations imposed upon it by this Agreement and has not remedied that default within 30 Days of notice from the terminating party; or FORCE MAJEURE Notwithstanding the other provisions of this Agreement, but subject to section 15.2, a Party shall be relieved from liability under this Agreement to the extent that a Force Majeure Event results in or causes a failure by that Party in the performance of any obligations imposed on it by this Agreement (Affected Party). Notwithstanding section 15.1, a Force Majeure Event shall not relieve an Affected Party from liability: to pay money due under this Agreement; or to give any notice required to be given pursuant to this Agreement (other than a notice via XXXXX where XXXXX is affected by such Force Majeure Event), provided that the Interconnected Party shall be relieved of its obligation to pay any Interconnection Fee and Odorisation Fee to the extent that the Interconnected Party is unable to inject Gas at the relevant Receipt Point on account of that Force Majeure Event (as determined by First Gas). If an Affected Party seeks relief under section 15.1, that Party shall, upon the occurrence of any failure due to a Force Majeure Event: as soon as reasonably practicable but in any event within 48 hours give notice to the other Party of the occurrence of the event or circumstance claimed to be a Force Majeure Event and provide to the other Party full particulars relating to the event or circumstance and the cause of that failure. The notice shall also contain an estimate of the period of time required to remedy such failure; render the other Party reasonable opportunity and assistance to examine and investigate the event or circumstance and the matters which caused the event or circumstance and failure; as quickly as reasonably practicable, use due diligence and take reasonable steps to rectify, remedy, shorten or mitigate the circumstances giving rise to the Force Majeure Event so as to minimise any Loss or other effects of the suspension of obligations suffered or incurred, or likely to be suffered or incurred by the Party; and give notice as soon as reasonably practicable, but in any event within 48 hours to the other Party upon termination of the Force Majeure Event. A Party will not be able to claim relief from liability under section 15.1 solely as a result of the act or omission of any agent or contractor of that Party, unless such act or omission is caused by or results from events and/or circumstances which would be a Force Majeure Event if such person were the Party. The Interconnected Party will not be able to claim relief from liability under section 15.1 solely as a result of the suspended performance, or non-performance, of the obligations of any Shipper using a Receipt Point, only to the extent that such suspended performance, or non-performance of that Xxxxxxx’s obligations relates to that Receipt Point.

Appears in 1 contract

Samples: Existing Interconnection Agreement

Operational Flow Order. If any of the events described in section 9.1(a) to (g) occur, First Gas may give the Interconnected Party an Operational Flow Order. The Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicable. If the Interconnected Party conveys Gas taken at a Delivery Point to an End-user (or is itself the End-user) who needs a quantity of Gas to shut down its plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party shall notify First Gas of that requirement and of the specific quantity of Gas required. If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be taken. Curtailment of Nominated Quantities Pursuant to section 9.6 and subject to section 9.79.6, First Gas may curtail each Shipper’s most recent Approved NQ at that Delivery Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party to curtail its take of Gas (or its ability to take Gas) at a Delivery Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulations). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6: First Gas may curtail the Interconnected Party’s take of Gas itself; for the purposes of the definition of “Reasonable and Prudent Operator”, this section 9 and section 16, any such failure shall constitute a failure by the Interconnected Party to act as a Reasonable and Prudent Operator; andand the Interconnected Party shall indemnify First Gas for any Loss incurred by First Gas (except to the extent that First Gas contributed to that Loss and/or did not mitigate its Loss to the fullest extent reasonably practicable). Relief from Charges In relation to any curtailment under section 9.1(a) to (c) or section 9.2, the Interconnection Fee and the Odorisation Fee (if any) at a Delivery Point will not be payable for the period of that curtailment to the extent of the reduction in the normal or intended take of Gas, except to the extent that the Interconnected Party: caused or contributed to any event or circumstance giving rise to that curtailment, including in the circumstances referred to in sections 3.5 or 3.6; was itself carrying out maintenance or other work such that its ability to take Gas was (or would have been) reduced to or less than the level of Gas injection that was (or would otherwise have been) available given the curtailment; and/or failed to comply with an instruction from First Gas or from the Critical Contingency Operator under section 9.6 or section 9.9. prudential At all times during the term of this Agreement and until the Interconnected Party has paid all outstanding amounts and all amounts payable or which may become payable in the 26 Months following expiry or termination of this Agreement, the Interconnected Party must, at its election, comply with one of the following: hold an acceptable credit rating in accordance with section 10.2; or arrange for a third party to provide one or a combination of the following securities (each a Credit Support), for the amount required in accordance with this section 10, provided the party providing the Credit Support maintains an acceptable credit rating in accordance with section 10.2: an unconditional payment guarantee or letter of credit in favour of First Gas; or an unconditional third party payment guarantee in favour of First Gas; or

Appears in 1 contract

Samples: Interconnection Agreement

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Operational Flow Order. If Subject to section 9.7, if any of the events described in section 9.1(a) to (ge) occuroccurs, First Gas may give the Interconnected Party an Operational Flow Order. The , which the Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicable. If the Interconnected Party conveys Gas taken at a Delivery Point to an End-user (or is itself the End-user) who needs a quantity of Gas to shut down its plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party shall notify First Gas of that requirement and of the specific quantity of Gas required. If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be taken. Curtailment of Nominated Quantities after OFO Issued Pursuant to section 9.6 and subject to section 9.79.6, First Gas may will curtail each Shipper’s most recent Approved NQ Nominated Quantity at that Delivery Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party to shall curtail its take of Gas (or its ability to take Gas) at a Delivery Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulations). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6OFO: First Gas may curtail the Interconnected Party’s take of Gas itself; for and the purposes of the definition of “Interconnected Party shall be deemed not to have acted as a Reasonable and Prudent Operator”Operator and shall indemnify First Gas for any Loss incurred by First Gas (except to the extent that First Gas contributed to that Loss and/or did not use reasonable endeavours to mitigate its Loss). Relief from Charges In relation to any curtailment under section 9.1(a) to (c) or section 9.2, this the Interconnection Fee and Odorisation Fee at a Delivery Point (if any) will not be payable for the period of that curtailment to the extent of the reduction in the normal or intended take of Gas, except to the extent that the Interconnected Party: caused or contributed to any event or circumstance giving rise to that curtailment, including in the circumstances referred to in section 9 3.4 or 3.5; was itself carrying out maintenance or other work to the extent that its ability to take Gas was less than the curtailment; or failed to comply with an instruction from First Gas under section 9.6 or from the Critical Contingency Operator under section 9.9. fees and section 16charges OBA Charges For any Delivery Point at which an OBA applies, any such failure shall constitute a failure by the Interconnected Party shall be liable for and shall pay to act First Gas: Daily Overrun Charges; Daily Underrun Charges; and Hourly Overrun Charges, and in addition, shall be liable for and shall pay to First Gas: Balancing Gas Charges; and charges for Excess Running Mismatch; (together, XXX Xxxxxxx) determined by First Gas in accordance with the Code. Over-Flow Charge The Interconnected Party shall pay a charge for any Hour in which the metered quantity at a Delivery Point exceeds the Physical MHQ of that Delivery Point (Over-Flow Charge), equal to: Fee × OFQ × 20 where: Fee is the higher of the fee for (as applicable) Daily Nominated Capacity or Supplementary Capacity (expressed in $/GJ in each case) for that Delivery Point in the current Year, as notified by First Gas to the Interconnected Party; and OFQ, the Over-Flow Quantity, is the greater of: the Hourly metered quantity – Physical MHQ; and zero. Excessive Flow Causing Loss In addition to any Daily Overrun Charge, Hourly Overrun Charge, Over-Flow Charge and/or amount under section 3.4(a) it may be liable to pay, the Interconnected Party shall indemnify First Gas for any Loss incurred by First Gas that arises from its Daily or Hourly Overrun or Over-Flow (where that Loss shall include any Interconnection Fees, Transmission Charges and/or Non-standard Transmission Charges which First Gas may be required to waive or rebate as a result) up to the Capped Amounts. First Gas shall use reasonable endeavours in the circumstances to mitigate its Loss. The Interconnected Party shall: not be relieved of liability under the indemnity in this section 11.12; and be deemed not to have acted as a Reasonable and Prudent Operator, if its Daily or Hourly Overrun or Over-Flow result in a Critical Contingency being declared. Credits Receivable as an OBA Party If it is also an OBA Party, First Gas will credit the Interconnected Party in accordance with the Code: any Balancing Gas Credits due to it; anda share of the total incentive charges payable by all Delivery Point OBA Parties in respect of the previous Month, equal to: TICOBDP × MQIP ÷ ∑MQOBDP where: TICOBDP is the total of Daily Overrun Charges, Daily Underrun Charges and Hourly Overrun Charges payable by all OBA Parties at Delivery Points that Month; MQIP is the aggregate of the metered quantities for that Month of all Delivery Points under this Agreement at which an OBA applies; and ∑MQOBDP is the aggregate of the metered quantities for that Month of all Delivery Points at which an OBA applies; and a share of the total Excess Running Mismatch Charges payable by all Delivery Point OBA Parties in respect of the previous Month, equal to: ERMCOBDP × MQIP ÷ ∑MQOBDP where: ERMCOBDP is the aggregate of the charges for Negative ERM and Positive ERM payable by all OBA Parties at Delivery Points that Month; and MQIP and ∑MQOBDP each have the same meaning as in this section 11.13(b).

Appears in 1 contract

Samples: Existing Interconnection Agreement

Operational Flow Order. If any of the events described in section 9.1(a) to (ge) occuroccurs, First Gas may give the Interconnected Party an Operational Flow Order. The , which the Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicableXXXXX. If the Interconnected Party conveys is a Gas taken at a Delivery Point to an End-user (or is itself the End-user) who producer and needs a quantity of Gas to shut down its production plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party it shall notify First Gas of that requirement and of the specific quantity of Gas required. If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be takeninjected. Curtailment of Nominated Quantities Pursuant to section 9.6 and subject to section 9.79.6, First Gas may will curtail each Shipper’s most recent Approved NQ Nominated Quantity at that Delivery Receipt Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party to shall curtail its take injection of Gas (or its ability to take inject Gas) at a Delivery Receipt Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulations). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6OFO: First Gas may curtail the Interconnected Party’s take injection of Gas itself; for the purposes of the definition of “Reasonable and Prudent Operator”, this section 9 and section 16, any such failure shall constitute a failure by the Interconnected Party shall be deemed not to act have acted as a Reasonable and Prudent OperatorOperator and shall indemnify First Gas for any Loss incurred by First Gas (except to the extent that First Gas contributed to that Loss and/or did not use reasonable endeavours to mitigate its Loss). Relief from Charges In relation to any curtailment under section 9.1(a) to (c) or section 9.2, the Interconnection Fee and the Odorisation Fee (if any) at a Receipt Point will not be payable for the period of that curtailment to the extent of the reduction in the normal or intended injection of Gas, except to the extent that the Interconnected Party: caused or contributed to any event or circumstance giving rise to that curtailment, including in the circumstances referred to in sections 3.4 or 3.5; andwas itself carrying out maintenance or other work to the extent that its ability to inject Gas was less than the curtailment; or failed to comply with an instruction from First Gas under section 9.6 or from the Critical Contingency Operator under section 9.9. prudential At all times during the term of this Agreement and until the Interconnected Party has paid all outstanding amounts and all amounts payable or which may become payable in the 24 Months following expiry or termination of this Agreement, the Interconnected Party must, at its election: hold an acceptable credit rating in accordance with section 10.2; or arrange for a third party to provide one or a combination of the following securities (each a Credit Support), for the amount required in accordance with this section 10, provided the party providing the Credit Support maintains an acceptable credit rating in accordance with section 10.2: an unconditional payment guarantee or letter of credit in favour of First Gas; or an unconditional third party payment guarantee in favour of First Gas; or

Appears in 1 contract

Samples: Interconnection Agreement

Operational Flow Order. If Subject to section 9.7, if any of the events described in section 9.1(a) to (ge) occuroccurs, First Gas may give the Interconnected Party an Operational Flow Order. The , which the Interconnected Party shall use its best endeavours to take such actions as it is able to take to comply with that OFO in the shortest practicable time. First Gas will minimise the period of curtailment stipulated in an OFO to the extent practicable. First Gas will publish each OFO on XXXXX as soon as practicable. If the Interconnected Party conveys Gas taken at a Delivery Point to an End-user (or is itself the End-user) who needs a quantity of Gas to shut down its plant with minimal risk of damage to that plant (but not any product produced by that plant), or the Interconnected Party is such an End-user, the Interconnected Party shall notify First Gas of that requirement and of the specific quantity of Gas required. If First Gas subsequently issues an OFO to the Interconnected Party, it will if practicable allow for such quantity of Gas to be taken. Curtailment of Nominated Quantities after OFO Issued Pursuant to section 9.6 and subject to section 9.79.6, First Gas may will curtail each Shipper’s most recent Approved NQ Nominated Quantity at that Delivery Point in XXXXX, including where an OBA applies, in accordance with the OFO and the Code. Critical Contingency In the event of a Critical Contingency, First Gas may instruct the Interconnected Party to shall curtail its take of Gas (or its ability to take Gas) at a Delivery Point as required to comply with the instructions of the Critical Contingency Operator and the requirements of the CCM Regulations (and the Interconnected Party shall do so and shall otherwise comply with any other instructions of the Critical Contingency Operator and the requirements of the CCM Regulations). OFOs are to be consistent (or amended to be consistent) with any instructions from the Critical Contingency Operator (including any shut down profile required by the Critical Contingency Operator). Failure to Comply The Interconnected Party agrees that if it fails to comply with an OFO in accordance with section 9.6OFO: First Gas may curtail the Interconnected Party’s take of Gas itself; for the purposes of the definition of “Reasonable and Prudent Operator”, this section 9 and section 16, any such failure shall constitute a failure by the Interconnected Party shall be deemed not to act have acted as a Reasonable and Prudent OperatorOperator and shall indemnify First Gas for any Loss incurred by First Gas (except to the extent that First Gas contributed to that Loss and/or did not use reasonable endeavours to mitigate its Loss). Relief from Charges In relation to any curtailment under section 9.1(a) to (c) or section 9.2, the Interconnection Fee and Odorisation Fee at a Delivery Point (if any) will not be payable for the period of that curtailment to the extent of the reduction in the normal or intended take of Gas, except to the extent that the Interconnected Party: caused or contributed to any event or circumstance giving rise to that curtailment, including in the circumstances referred to in section 3.4 or 3.5; was itself carrying out maintenance or other work to the extent that its ability to take Gas was less than the curtailment; or failed to comply with an instruction from First Gas under section 9.6 or from the Critical Contingency Operator under section 9.9. prudential At all times during the term of this Agreement and until the Interconnected Party has paid all outstanding amounts and all amounts payable or which may become payable in the 24 Months following expiry or termination of this Agreement, the Interconnected Party must, at its election: hold an acceptable credit rating in accordance with section 10.2; or arrange for a third party to provide one or a combination of the following securities (each a Credit Support), for the amount required in accordance with this section 10, provided the party providing the Credit Support maintains an acceptable credit rating in accordance with section 10.2: an unconditional payment guarantee or letter of credit in favour of First Gas; or an unconditional third party payment guarantee in favour of First Gas; or a security bond in favour of First Gas. For the purposes of section 10.1, an acceptable credit rating means a long term credit rating of at least Baa3 (Xxxxx’x Investor Services Inc.), BBB- (Standard & Poors Ratings Group), B (AM Best), B (Fitch) or an equivalent credit rating or other reference from a reputable person which is acceptable to First Gas, (including confirmation from an auditor that, in its opinion, the relevant Interconnected Party or third party Credit Support provider satisfies the criteria that would be applied in the granting of that credit rating). First Gas may require the Interconnected Party or third party Credit Support provider, as the case may be, to provide evidence of the existence of an acceptable credit rating (as set out in section 10.2). The amount secured by any Credit Support will be First Gas’ reasonable estimate of 3 Months’ of the Charges and (if applicable) the OBA Charges (plus GST), provided that either Party may review that amount (though not more frequently than quarterly) and require it to be adjusted up or down. The Interconnected Party shall as soon as practicable notify First Gas if: the Interconnected Party ceases to comply with section 10.1; the Interconnected Party believes that its financial position is likely to be materially adversely impaired such that its ability to pay the Charges and the OBA Charges will consequently be affected; a third party Credit Support provider (upon which its current satisfaction of the prudential requirements in this section 10 depends) ceases to hold an acceptable credit rating in terms of section 10.1; or either it, or the third party Credit Support provider is placed on negative credit watch. If the Interconnected Party fails to pay First Gas any amount set out in any invoice issued by First Gas pursuant to this Agreement on the due date for payment (other than as a result of an Invoice Dispute or dispute) then on the expiry of 5 Business Days’ prior written notice from First Gas, without limiting any other right it may have under this Agreement, First Gas may: make a claim under any Credit Support to the extent payment is due and the Interconnected Party shall procure that payment; require Credit Support, if Credit Support has not already been provided; require a change to the type of Credit Support provided; and/or require an increase in the level of Credit Support. Where First Gas makes a claim against any Credit Support, the Interconnected Party must procure replacement Credit Support within 10 Business Days so that the Credit Support requirements set out in section 10.1 continue to be met. Where an Interconnected Party is required to provide new or additional Credit Support, it must do so within 20 Business Days of First Gas’ written request. If this Agreement is terminated, First Gas will release any associated Credit Support when and to the extent that the Interconnected Party has paid all outstanding amounts under this Agreement. fees and charges Interconnection and Odorisation Fees Where, in respect of a Delivery Point in operation on the Commencement Date, an Interconnection Fee: has not previously been payable, First Gas will not charge any such fee during the term of this Agreement, except to the extent that Delivery Point becomes an Additional Delivery Point; or is payable, that fee, together with the procedure for adjusting or redetermining it, will be as recorded in Schedule One. In respect of any Additional Delivery Point, First Gas shall determine how it will recover its costs to design, construct, operate and maintain that Additional Delivery Point, including via an Interconnection Fee (and, if applicable, a Termination Fee) payable by the Interconnected Party and determined in accordance with this section 11. If it elects to own Odorisation Facilities, and recover its costs to design, construct, operate and maintain them via a separate Odorisation Fee payable by the Interconnected Party, First Gas may determine that fee (and any associated Termination Fee) as described in this section 11.

Appears in 1 contract

Samples: Interconnection Agreement

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