OPERATIONAL FLOW ORDER ISSUED – LONESTAR LAMAR (LOC 905582)
Due to excessive takes above the posted advisory and the related impact to system operating conditions, including maximum peaking withdrawals from storage facilities, Natural is issuing an Operational Flow Order (OFO) for the LONESTAR LAMAR delivery point (LOC 905582), effective 9:00 am., Central Clock Time, Friday, February 21, 2025, and continuing until further notice. Additionally, effective for gas day Thursday, February 20, 2025, Intraday 1 Cycle and for the remainder of the gas day, Natural will not schedule any nominated increases at LONESTAR LAMAR delivery point (LOC 905582). See specific actions Natural is requiring shippers 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 Natural's Interactive Website for updates.
DAILY
For the gas day, Shippers (including Point Operators) are prohibited from taking any volume in excess of those equal to confirmed transportation nominations at LONESTAR LAMAR (LOC 905582). Excess daily takes will be subject to applicable Unauthorized Overrun charges, OFO charges and/or OFO balancing charges (as described below). Daily Balancing Charges and overrun charges associated with Shippers and Point Operators undertaking volumes (long position) will be waived during this OFO in accordance with Natural's FERC Gas Tariff.
HOURLY
Additionally, as provided in Section 7.4 of the GT&C of Natural's FERC Gas Tariff, Point Operators and Shippers (where no point operator exists) at LONESTAR LAMAR (LOC 905582) 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 – 105%
Includes Primary and Secondary Confirmed Nominations:
Timely/Evening Cycles
Limited to 4.375% (105% / 24 hours) of Firm Service.
Intra-Day 1 Cycle
Limited to the hourly rights computed in the previous cycle for Firm Service; plus 5.53% (105% / 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 7.00% (105% / 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 9.55% (105% / 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:
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 sufficient to accommodate the calculated hourly rights for the remaining hours of the gas day. Specifically, hourly rights cannot exceed 105% / 24 hours of Shipper's MDQ on the nominated contract, plus 105% / 24 hours of Shipper's interruptible nominations.
In addition, Natural would like 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 NGPL 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 23.6 of the General Terms and Conditions of Natural's FERC Gas Tariff sets forth the provisions, including applicable penalties, for failure to comply with an OFO.
UNATHORIZED OVERRUN
Point Operators are on notice that any volumes taken in excess of the confirmed nominations will be treated as Unauthorized Overrun subject to any applicable charges (Section 12), penalties for violating the OFO (Section 23.6), and any Balancing Service Charges (as referenced below). This OFO overrides any prior predetermined allocation included in Section 11 of the General Terms and Conditions of Natural's FERC Gas Tariff to the extent the overtake would be treated differently.
BALANCING SERVICE CHARGES
Section 12.3 of the General Terms and Conditions of Natural's FERC Gas 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 no-notice rights applicable to such point.
Daily Balancing Charges and overrun charges associated with Shippers and Point Operators undertaking volumes (long position) will be waived during this OFO in accordance with Natural's FERC Gas Tariff.
Please contact your Account Director for any questions.