OFO Declaration and Termination Summary

This summary is in accordance with Section 12.17(d)(4) of the General Terms and Conditions of Panhandle's Tariff

Due to cold weather forecasts, Panhandle issued an extreme weather alert on February 3, 2021, that Panhandle was preparing for increased pipeline utilization and reduced operational flexibility on its system. Panhandle requested that, effective as of the February 6, 2021 gas day, all delivery point operators minimize over-takes and all receipt point operators minimize under-deliveries into the Panhandle system. Panhandle also provided notice of the following:

         All shippers under Rate Schedules EFT, EIT, SCT, GDS and LFT are required to limit their hourly deliveries to one-sixteenth of the quantity scheduled for delivery on the applicable day.

         Power plant operators must have nominated supply.

         Panhandle may implement intraday scheduling reductions to ensure that nominations match actual flowing quantities. Shippers are encouraged to submit their nominations for the Timely cycle.

         All storage customers are requested to stay at or below their Maximum Daily Withdrawal Quantity and storage customers should adjust flowing volumes to remain at or below these limits.

         Panhandle may limit auto-unpark nominations for the duration of the extreme weather and it will evaluate such limits on a daily basis.

After the initial extreme weather alert on February 3, 2021, weather conditions grew increasingly severe. On February 12, 2021, Panhandle issued Update #1 to its extreme weather alert. Due to the unprecedented market conditions resulting from the extreme weather at such time, Panhandle recommended that shippers utilize their contracted primary receipt and delivery points in order to maintain the highest priority of service during this event. In addition to the actions outlined in the February 3, 2021 extreme weather alert, Panhandle notified the shippers that in order to protect system reliability and ensure the operational integrity of gas service across the Panhandle system, it may limit interruptible and secondary firm nominations to ensure that scheduled delivery obligations are maintained during this period.

Temperatures measured at Panhandle's Hopeton location were as follows:

On February 15, 2021 at 9:50 am central time, Panhandle notified shippers in Update #2 that it was curtailing Field Zone auto-unpark nominations beginning Intraday Gas Day 15, which was February 15, 2021. Section 9.1 of the General Terms and Conditions ("GT&C") of Panhandle's Tariff gives Panhandle the unqualified right to interrupt services, starting with Gas Parking Service, to provide service under Panhandle's firm rate schedules. Panhandle instructed shippers to adjust their pool nominations accordingly. Panhandle ended Update #2 by alerting shippers that it may need to issue an OFO if shippers did not comply with this alert or to further protect the Panhandle system. The receipt points that contributed to the significant volume shortages were as follows:

On February 15, 2021 at 5:59 pm central time, Panhandle was required to issue a Notice of OFO for the Field Zone because of the continued deterioration of the weather conditions and certain shippers' failure to adjust their pool nominations as requested in Update #2. Panhandle issued the OFO to be effective immediately to alleviate conditions that threatened the Panhandle system's integrity, safety or reliability of service. Panhandle notified shippers that they were required to use their best efforts to comply with the OFO as soon as possible but in no event later than two hours, after which the applicable scheduling charges or unauthorized overrun penalties would apply. Accordingly, shippers and point operators were required to take the following actions:

         All auto-unpark nominations must be reduced to zero in the Field Zone until further notice.

         All nominations for receipts must match the flow of gas volumes physically delivered to receipt points in the Field Zone until further notice.

Panhandle cautioned shippers that the OFO was expected to remain in place until February 19, 2021. As seen in the following illustration, Panhandle experienced a significant drop in line pack levels due to volume shortages and certain shippers' failure to adjust their pool nominations which eventually led to the necessity to issue the OFO.

On February 19, 2021 at 11:19 am central time, Panhandle terminated the OFO because of improving circumstances related to weather and supply shortages on the system which led to increased line pack levels. Also on February 19, 2021, at 11:29 am central time, Panhandle issued Update #3 to its extreme weather alert ending the curtailment. Despite the end of the curtailment, Panhandle reserved the right to limit or turn off all auto-unpark nominations on the Panhandle system for the duration of the extreme weather without prior notice and that such limits would be evaluated on a daily basis. Panhandle was able to lift the emergency weather alert restrictions on February 22, 2021.