Home > Term: scheduling penalty
scheduling penalty
A monthly or daily penalty assessed on the difference between the volume scheduled to be tendered by the shipper to the pipeline and the volume actually tendered for delivery. The purpose of the penalty is to maintain high throughput on the pipeline and prevent disruption of deliveries to other transportation and sales customers. Because the damage caused by the shipper failing to tender scheduled volumes cannot be remedied after the fact, there is no notice or make-up period involved.
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