The total maximum On-System operating capacity is defined as the facility design or contractual limitation to deliver gas to the SoCalGas system adjusted for operational constraints (i.e. maintenance localized restrictions, and upstream delivery pressures) as determined each day. Each Day, Receipt Point, Sub-Zone and Transmission Zone On-System capacities are set at their physical operating maximums under the operating conditions for that day. SoCalGas will limit the confirmed nominations based on priority rights to the total maximum operating capacity of that individual Receipt Point, Sub-Zone, Area-Zone or Transmission Zone. The Off-System Operating Capacity is based on the Latest Scheduled On-System Capacity minus the Minimum Flow Requirement (where applicable) plus Prior Cycle Backhaul Cuts for Cycles 2, 3 and 4. The exception is Cycle 1, where the Off-System Operating Capacity is based on the Gross Operating Capacity minus the Minimum Flow Requirement (where applicable). SoCal will limit the confirmed nominations based on the Off-System delivery rights to the total maximum off-system operating capacity of that individual Delivery Point, Sub-Zone, Area-Zone or Transmission Zone. Notes:  1) The exceptions to the Off-System Operating Capacity are the California Production Zone and Receipts and Elk Hills-Gosford. These points are not available for off-system deliveries. 2) SoCalGas reserves the right to reduce the amount of capacity offered for Off-System Delivery (OSD) service at one or more of its OSD points, at its sole discretion for operational purposes. Receipt Points - The physical or logical location where the quantity will be scheduled for receipt by SoCalGas. Delivery Points - The physical or logical location where the quantity will be scheduled for delivery by SoCalGas. Sub-Zone - When two or more interconnecting pipelines or supply sources delivery into a Receipt/Delivery Point. Transmission Zone - When two or more interconnecting pipelines or supply sources deliver/receive into a common Transmission system.