Posting Date: 07/17/2007

Operational Flow Order Penalty Notice

Reason for OFO:          Low Inventory due to Customer Overtakes

Issue Date and Time:   July 17, 2007, 0900 Pacific Time

Begin Date and Time:  July 17, 2007, 1000 Pacific Time

End Date and Time:     Until Further Notice

OFO Type:                    System Wide     


Effective 10:00 a.m., July 17, 2007, and until further notice, Gasoducto Bajanorte Pipeline (GB) is issuing an Operational Flow Order (OFO) due to a low inventory situation caused by shipper overtakes of gas volumes on the GB system.

Please refer to section 15 of GB's General Terms and Conditions for details regarding the ability to issue an OFO and also the penalty provisions as it applies to all customers in the event of noncompliance with the OFO.

You are urged to immediately review your supply/demand balance, and the performance of your suppliers and end-users, to insure sufficient gas is being delivered to the GB system and that your consumption does not exceed confirmed quantities at your delivery points on the GB system.  To insure system integrity, maintain required system pressures, and provide firm service to customers, GB may curtail all interruptible loads, will closely monitor consumption rates and may physically reduce deliveries at points that are overtaking confirmed delivery quantities at any time after the effective date/time of the OFO.  Additionally, end-users who have made unauthorized overtakes on gas day Monday, July 16, 2007, will be required to deliver the amount of the unauthorized overtake to GB in addition to the quantity to be consumed before the end of gas day Tuesday, July 17, 2007.  If end-user is unable to provide the timely payback of the unauthorized overtake, end-user must immediately reduce their rate of consumption and maintain their rate of supply in order to provide the payback amount to GB prior to the end of gas day Tuesday, July 17, 2007, or OFO penalties will apply.

If you have any questions, please contact Jay Story at 503.833.4309, Paul Oliver at 503.833.4201, or GB's Gas Control Center at 1.800.447.8006.

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