American Midstream (AlaTenn), LLC

Fifth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-493-000, Status: Effective

Original Sheet No. 128 Original Sheet No. 128

 

GENERAL TERMS AND CONDITIONS (continued)

 

corrected pursuant to the procedures in effect at the time the imbalance was

incurred.

 

(f) Limitation on Penalties - Any imbalances caused by an event which excuses

performance

under

Section II of the General Terms and Conditions or caused by an action of

Transporter, including

providing the OBA Parties inaccurate imbalance information at points with

Electronic Data, (1)

will not

be included in the calculation of the total monthly imbalance for purposes of

determining the

appropriate

cash-out level and (2) will be cashed-out at the 0-5% tolerance level in Section

3.7.

 

(g) Disposition of Cash-Out Provisions - All Cash-out Provision revenues

received by

Transporter in

accordance with Section 3.7 (c) that are in excess of Transporter's costs,

including, but not

limited to:

(1) payments made by Transporter in accordance with Section 3.7, and (2)

Transporter's gas

costs and

fuel and loss costs properly allocable to Shipper(s), will be refunded annually to all

Shippers pro-

rata

based on the ratio of such Shipper's through-put for the most recent twelve (12)

months to the

total

through-put of all Shippers during the same period. If Transporter incurs a net

cost during such

12

Month period, the amount will be deferred to offset against such revenue during

the next 12

Month

period. Carrying costs shall be calculated on the net balance each Month utilizing

the rate set

forth in

Section 154.501 of the Commission's Regulations.

 

(h) Operational Integrity - Transporter shall have the right to take any action that

may be

required to

adjust receipts and deliveries under any transportation agreement to reflect actual

experience or

to

alleviate conditions which threaten the operational integrity of Transporter's

system, including

without

limitation maintenance of service to Shippers with a higher scheduling priority

and/or services.