B-R Pipeline Company

Original Volume No. 1

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Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective

Original Sheet No. 75 Original Sheet No. 75 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

14. DETERMINATION OF DELIVERIES AND IMBALANCES (Continued)

 

In the event an undertake situation exists, Transporter

shall notify each Receiving Party of the volume required to be

taken off the system within the next 72 hours as imbalance

make-up to eliminate the underrun imbalances so as to return the

system to a reasonable operational level and avoid the imbalance

penalty as specified in Section 14.5(c)(v). Such volumes shall

be based upon cumulative underrun imbalances which contributed to

the underrun imbalance problem as determined by Transporter's

operational data up to the date of the Declared Entitlement Period and

calculated for each Receiving Party in proportion to such party's

undertakes. Daily unauthorized underrun charges as specified in

Sections 14.5(c)(iii) and (iv) will also apply if Receiving Party causes

additional unauthorized underrun imbalances during a Declared Entitlement

Period.

 

Receiving Party shall pay Transporter for all unauthorized

overrun or underrun volumes, as defined in Section 14.5(a) above,

that meet or exceed 3% of Receiving Party's entitlement as set forth

in Section 14.5(b) with respect to unauthorized overrun volumes and 5%

of Receiving Party's entitlement as set forth in Section 14.5(b) with

respect to unauthorized underrun volumes. The following amounts will

be payable in addition to the amounts otherwise payable by Receiving

Party to Transporter under Transporter's applicable Rate Schedules:

 

(i) For that part of the unauthorized overrun volume

which is 3% or more but less than 5% of Receiving Party's

entitlement for such day, an amount equal to the Index Price (as

defined on Sheet No. 6) on the date of the overrun per Dth.

 

(ii) For that part of the unauthorized overrun volume

which is equal to or greater than 5% of Receiving Party's

entitlement for such day, an amount equal to the greater of

$25.00 or two times the Index Price (as defined on Sheet No. 6)

on the date of the overrun per Dth.

 

(iii) For that part of the unauthorized underrun volume which is

at least 5% but less than 10% of Receiving Party's entitlement

for such day, an amount equal to the Index Price (as defined on

Sheet No. 6) on the date of the underrun per Dth.

 

(iv) For that part of the unauthorized underrun volume which is

equal to or greater than 10% of Receiving Party's entitlement for

such day, an amount equal to the greater of $25.00 or two times

the Index Price (as defined on Sheet No. 6) on the date of the

underrun per Dth.

 

(v) In addition to (iii) and (iv) above, for that part of

the unauthorized underrun imbalances not taken within the

72 hour period as set forth in Section 14.5(c), an amount equal

to two times the Index Price per Dth.