RATE SCHEDULE PAL
PARK AND LOAN SERVICE
6. FAILURE BY BUYER TO RESPOND (Continued)
6.2 Loan Service (Continued)
(ii) Company's prevailing operations require Company
to notify Buyer that all or part of Buyer's
loaned quantities must be returned to Company,
and Buyer fails to comply within the specified
time frame; and/or
(iii) Subject to Subsection 2.4 herein, the PAL
account reflects a balance at the termination
date of the associated Exhibit A to an executed
PAL Agreement.
(b) If, pursuant to Subsection 6.2(a)(i), Company notifies
Buyer that deliveries of Buyer's loaned quantities must
be suspended or be reduced, only those quantities
loaned in violation of the notification shall be sold
to Buyer at 150% of the actual price.
(c) Proceeds resulting from Subsection 6.2(a)(i), (ii), and
(iii), net of costs, shall be credited to all Shippers
except for the offending Shipper. Net penalty revenue
will be credited to Shippers in the Billing Month
corresponding to the Production Month in which the
penalty was incurred. Such credit shall be allocated
on the basis of the Dekatherm-miles transported for the
Production Month in which the penalty occurred
excluding the Dekatherm-miles of the offending
Shipper(s). The credit shall be revenue net of actual
costs.
(d) No penalty will be assessed, pursuant to this
Subsection, on a remaining balance if the
Buyer-submitted nominations related to that balance to
clear the PAL transaction cannot be scheduled by the
Company, through no fault of the Buyer.
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