Garden Banks Gas Pipeline, LLC

Original Volume No. 1

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Effective Date: 05/10/2010, Docket: RP10-594-000, Status: Effective

Second Revised Sheet No. 319 Second Revised Sheet No. 319

Superseding: First Revised Sheet No. 319

 

EXHIBIT B TO FORM OF NGL BANK AGREEMENT

EXAMPLE OF REPRESENTATIVE SHIPPER'S RECEIPT SETTLEMENT

 

In this example calculation, Shipper 1 would receive a payment from the NGL

Bank:

Receipts to NGL Receipt Pt 1 Receipt Pt 2

Receipt Pt 3 Receipt Pt 4

Bank Ship1 Ship2 Ship3 Ship4 Ship5 Ship6 Average

GPM C2 1.33 0.81 1.24 1.07 1.24 0.73 1.17

GPM C3 0.74 0.45 0.69 0.60 0.69 0.40 0.65

GPM IC4 0.24 0.14 0.22 0.19 0.22 0.13 0.21

GPM NC4 0.21 0.13 0.19 0.17 0.19 0.11 0.18

GPM C5+ 0.44 0.27 0.41 0.36 0.41 0.24 0.39

GPM Total 2.96 1.81 2.77 2.38 2.77 1.62 2.60

Btu/CF 1160 1100 1150 1130 1150 1090 Total

Volume (MMSCF/D) 100 50 50 50 100 10 360

Btu/CF * MSCF/D 116000 55000 57500 56500 115000 10900

410900

Shipper 1 Revenue From Receipt Point 1

Component Shipper GPM GPM Delta from Avg. Recovery Fraction Lease

Settle-ment Fraction NGL Bank Recovered GPM NGL Price cents/gal

Revenue [$/month]

C2 1.33 0.160 0.40 80% 0.051 23.50 $36,088

C3 0.74 0.089 0.92 80% 0.065 37.63 $73,828

IC4 0.24 0.028 0.98 80% 0.022 47.00 $31,436

NC4 0.21 0.025 0.98 80% 0.020 44.00 $25,751

C5+ 0.44 0.053 0.85 80% 0.036 48.00 $52,212

Total 2.96 0.355 0.195 $219,315

Volume (MMSCFD) 100

Shipper 1 Shrinkage From Receipt Point 1

Component Shipper GPM GPM Delta from Avg. Recovery Fraction BTU Factor

(BTU/ Gal) BTU Value ($/MMBTU) Shrinkage Cost ($/month] Gross Margin

[$/month]

C2 1.33 0.160 0.40 65,869 $2.50 $31,610 $4,478

C3 0.74 0.089 0.92 90,830 $2.50 $55,696 $18,132

IC4 0.24 0.028 0.98 98,917 $2.50 $20,675 $10,761

NC4 0.21 0.025 0.98 102,913 $2.50 $18,822 $6,929

C5+ 0.44 0.053 0.85 118,623 $2.50 $40,322 $11,889

Total 2.96 0.355 $167,125 $52,189

Summary Shipper 1 Revenue $219,314.56

From Receipt Pt 1 Shrinkage Cost $167,125.29

Gross Margin $52,189.27

NGL Bank's Fee $ 862.23 =($2,700* 116000/410900 +

$100)

Shipper's (Payable)/Receivable $ 53,051.50

AVERAGE NGL QUALITY

 

Receipts into bank above average NGL content - Shipper is paid.

Deliveries from the bank above average NGL content - Shipper pays.

Receipts into bank below average NGL content - Shipper pays.

Deliveries from the bank below average NGL content - Shipper is paid.