Reason for OFO:          Low Inventory due to Customer Overtakes

Issue Date and Time:   July 7, 2005, 1000 Pacific Time

Begin Date and Time:  July 7, 2005, 1600 Pacific Time

End Date and Time:     Until Further Notice

OFO Type:                    System Wide     

Effective 10:00 AM, Thursday, July 7, 2005, 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 ensure 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 ensure 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 will be required to deliver the amount of gas required to eliminate their respective imbalances due to unauthorized overtakes in addition to the quantity to be consumed before the end of gas day Friday, July 8, 2005. End-users must provide payback of the unauthorized overtakes in an amount no less than 50% of the current imbalance prior to end of gas day Thursday, July 7, 2005, and the remainder provided prior to the end of gas day Friday, July 8, 2005. If end-users are unable to provide the timely payback of the unauthorized overtakes, end-users must immediately reduce their rate of consumption and maintain their rate of supply in order to provide the payback amount to GB as specified above or OFO penalties will apply immediately.  

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 (503) 833-4200.