Dan,

An EFO is a result of parties not complying with an OFO after multiple notices.  PG&E can confiscate gas if a scheduling party is not in compliance.  The same rules apply to an EFO as an OFO.  EFO stands for Emergency flow order.

Thanks,

Kim




Dan J Hyvl
04/04/2001 04:31 PM
To:	"Kolling, Grant" <grant_kolling@city.palo-alto.ca.us>, Kim Ward/HOU/ECT@ECT
cc:	 
Subject:	RE: Enfolio Master Firm Purchase/Sale Agreement  

 

Grant, 
	I have removed the red-line from the above document.  If it is in order, please print 2 originals, have them signed, and forward to me for signature by Enron.  I will attach a list of current traders who might be available to handle a trade with Palo Alto, and I will also have  a certificate of incumbency attached for the officer signing in behalf of Enron, and return a fully executed contract for your files.
	Regarding the OFO language, usually the pipeline notifies its customers of the OFO event and leave it to those customers to notify their parties.  Therefore, if Enron is scheduling gas into your transport contract and your transporter declares an OFO, you will get notice and be responsible for giving that notice to Enron after which time Enron would be responsible for its actions that were not in accord with the OFO notification.  Likewise, if Enron receives notification from its transporter and notified Palo Alto and Palo Alto failed to adjust its actions in compliance with the OFO notification, Palo Alto would be responsible for the consequences of such failure.  Usually, the OFO notification would require that the parties make their receipts and deliveries balance in accordance with their scheduled volumes.    I am not familiar with the concept of EFO, but do not think that  the OFO provisions apply.  Please advise as to what is meant by EFO so that I can verify with the transport group.