Carolina Gas Transmission Corporation

Original Volume No. 1

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Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 63 Original Sheet No. 63 : Effective

 

4. NOTIFICATIONS, ALLOCATIONS, LIMITATIONS, AND CASH OUT

 

4.1 For purposes of restricting park and loan transactions, Pipeline

will give priority to Service Agreements with the highest rate

paid to Pipeline on a per unit basis, provided that Shippers

paying more than a Recourse Rate will be considered to be paying

the Recourse Rate. Such unit rate shall be calculated by taking

total revenue generated during the term of the Service Agreement

and dividing by total transaction quantity to arrive at revenue

on a per unit basis. If there is a tie, service will be

allocated or limited on a pro rata basis among Shippers’

transaction quantity with the same per unit rate for park and

loan services.

 

4.2 Shipper may be required, on notice from Pipeline, to suspend or

reduce deliveries for parking, or receipts for lending. Further,

Shipper may be required, on notice from Pipeline, to remove

quantities of gas previously parked with Pipeline, or to return

quantities of gas previously loaned to Shipper.

 

4.3 Should Pipeline notify Shipper to remove or return quantities of

gas under Section 4.2 above, Pipeline’s notice shall specify the

effective nomination cycle by which parked quantities shall be

removed, or loaned quantities shall be returned, or both. Such

notice shall be consistent with Pipeline’s operating

requirements, but in no event shall the specified effective

nomination cycle be less than 48 hours from the time of

Pipeline’s notice unless Shipper and Pipeline mutually agree to a

different notice period.

 

4.4 To the extent Shipper fails to comply with such notice, Pipeline

shall cash out parked gas at the lowest of the Daily Gas Index

Prices for the duration of the transaction, and Pipeline shall

cash out loaned gas at the highest of the Daily Gas Index Prices

for the duration of the transaction. Such cash out payments

shall be debited or credited to the Transportation Deferred

Account as stated in GT&Cs Section 19.6.