OPERATIONAL FLOW ORDER ISSUED – HORIZON PIPELINE
Based on expected colder than normal weather, anticipated market demand and current system operating conditions, Horizon is issuing an Operational Flow Order (OFO) on its pipeline effective 9:00 am., Central Clock Time, Sunday, January 19, 2025, and continuing until further notice. See specific actions Horizon is requiring shippers to follow and the applicable timing requirements (daily and hourly) for compliance with the OFO below. Additionally, if conditions warrant, a Critical Time will be issued in the near future. Please monitor Horizon's Interactive Website for updates.
DAILY
For the gas day, each Shipper (including Point Operators) is prohibited from taking any volume in excess of those equal to confirmed transportation nominations plus applicable no-notice rights pursuant to third party balancing agreements at delivery points on Horizon. Excess daily takes will be subject to applicable Unauthorized Overrun charges, OFO charges and/or OFO balancing charges (as described below). Horizon is reminding Shippers and Point Operators that as part of this OFO, tolerances under POA agreements are limited to 2% (instead of 5%) of confirmed nominations at the point.
HOURLY
Additionally, as provided in the tariff [GT&C Section 5.4], at each point on Horizon, Point Operators and Shippers (where no point operator exists) are required to limit hourly takes. The hourly rights for each Shipper and Point Operator will be limited by service priority and nomination cycle, based on hours remaining in the gas day. Shippers and Point Operators are responsible for calculating and monitoring their hourly usage so as not to exceed the limits described herein. Excess hourly takes will be subject to OFO charges (as described below).
Hourly Rights for Firm Service – 130%
Includes Primary and Secondary Confirmed Nominations and Unused No-Notice firm service rights
Timely/Evening Cycles
Limited to 5.42% (130% / 24 hours) of Firm Service.
Intra-Day 1 Cycle
Limited to the hourly rights computed in the previous cycle for Firm Service; plus 6.84% (130% / 19 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service.
Intra-Day 2 Cycle
Limited to the hourly rights computed in the previous cycle for Firm Service; plus 8.67% (130% / 15 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service.
Intra-Day 3 Cycle
Limited to the hourly rights computed in the previous cycle for Firm Service; plus 11.82% (130% / 11 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service.
Hourly Rights for Interruptible Service – 105%
Includes Interruptible and AOR nominations, as well as POA tolerances
Limited to 4.375% (105% / 24 hours) of Interruptible Service.
Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 5.53% (105% / 19 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service.
Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 7.00% (105% / 15 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service.
Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 9.55% (105% / 11 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service.
Limitation on Nominations in All Cycles for Firm and Interruptible Service
Shippers are advised that nominations should be received by Timely/Evening Cycle in order to utilize full rights over 24 hours, to avoid exceeding the 24 hour ratable hourly takes calculation. In all cases, any first time nominations received on Non-Timely Cycles for full MDQ utilization rights, plus any scheduled ITS nominations, are subject to penalty on any hourly takes overages if the hourly takes rate exceeds the 24 hour ratable calculation. Shipper's hourly rights based on firm MDQ, plus interruptible nominations, must be adequate enough to accommodate the calculated hourly rights for the remaining hours of the gas day. Specifically, hourly rights cannot exceed 130% / 24 hours of Shipper's MDQ on the nominated contract, plus 105% / 24 hours of Shipper's interruptible nominations.
In addition, we want to remind point operators to utilize the Operator Point Reports available on our website to assist you in monitoring your hourly takes. These reports are available by linking to http://pipeline.kindermorgan.com. Select Horizon à Customer Activities à Log On à Flowing Gas à Additional Reports à NGPL//HRZ à NGPL/HRZ – Hourly Nomination Details.
CHARGES FOR VIOLATIONS OF OFOs
Section 34.6 of the General Terms and Conditions of Horizon's Tariff sets forth the provisions, including applicable penalties, for failure to comply with an OFO.
UNAUTHORIZED OVERRUN
Point Operators are on notice that any volumes taken in excess of the confirmed nominations and applicable no-notice rights pursuant to third-party balancing agreements of 2% of all confirmed nominations, will be treated as Unauthorized Overrun subject to any applicable charges (Section 10), penalties for violating the OFO (Section 34.6), and any Balancing Service Charges (as referenced below). This OFO overrides any prior predetermined allocation included in Section 9 of the General Terms and Conditions of Horizon's Tariff to the extent the overtake would be treated differently.
BALANCING SERVICE CHARGES
Section 10.3 of the General Terms and Conditions of Horizon's Tariff sets forth the provisions when Balancing Service Charges shall apply when an OFO is in effect, if actual deliveries allocated to a Shipper at any point or under any Agreement do not conform to the sum of such Shipper's confirmed nominations and applicable no-notice rights pursuant to third-party balancing agreements applicable to such point.
Please contact your Account Director for any questions.