Black Marlin Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2002, Docket: RP02-568-001, Status: Effective

Substitute Original Sheet No. 223 Substitute Original Sheet No. 223 : Effective

Superseding: Original Sheet No. 223

21.2 Cash-Out Procedures

 

a. An imbalance statement will be rendered prior to or with the invoice. Rendered is

defined as postmarked, time-stamped, and delivered to the designated site.

Imbalances under each of Shipper's service agreements will be separately cashed-out

according to the following schedule:

 

Underage Overage - Underage -

Overage Transporter Pays Shipper Pays

Imbalance Level Shipper Transporter

 

0% to 5% 100% x Index Price 100% x Index Price

5% to 10% 90% x Index Price 110% x Index Price

10% to 15% 80% x Index Price 120% x Index Price

15% to 20% 70% x Index Price 130% x Index Price

Greater than 20% 60% x Index Price 140% x Index Price

 

If deliveries for a Shipper's account exceed receipts less any line losses and

unaccounted-for gas for Shipper's account under a service agreement (an "Underage"),

the Underage Index Price will apply. If receipts less line losses and unaccounted-

for gas for a Shipper's account exceed deliveries for a Shipper's account under a

service agreement (an "Overage"), the Overage Index Price will apply. Cash-outs

will occur at the delivery points on a service agreement.

 

b. The monthly imbalance under each service agreement will be the difference between

total receipts less line loss and unaccounted-for gas and total deliveries. The

Underage or Overage Imbalance Level will be determined by dividing the imbalance

quantity by the total quantity of gas received for Shipper's account during the

relevant month under each service agreement. Transporter shall cash-out Shipper's

entire quantity of Underage or Overage quantity at a price equal to the product of

(i) the index percentage corresponding to the Underage or Overage Imbalance Level

set forth above, (ii) the Overage or Underage Index Price, and (iii) the Overage or

Underage quantity, all as appropriate.

 

c. The reference spot prices for each working week will be the Natural Gas

Intelligence, Houston Ship Channel, average price, less 5 cents ($0.05)/MMBtu.

 

d. The Underage Index Price is the highest "average" price posted in the table "Spot

Gas Prices" published by Natural Gas Intelligence for sales during the Month the

imbalance occurred for Houston Ship Channel.

 

e. The Overage Index Price is the lowest "average" price posted in the table "Spot Gas

Prices" published by Natural Gas Intelligence for sales during the Month the

imbalance occurred for Houston Ship Channel.