Cheniere Creole Trail Pipeline, L.P.

Original Volume No. 1

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Effective Date: 04/28/2008, Docket: RP08-137-000, Status: Effective

Original Sheet No. 140 Original Sheet No. 140 : Pending

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

B. Operational Balancing Agreement (OBA)

 

1. An OBA is a contract between two parties which specifies the procedures

to manage operating variances at an interconnect. For the purpose of

minimizing operational conflicts between various pipeline facilities with

respect to the delivery of gas to and from Transporter's pipeline system,

Transporter is willing to negotiate and execute OBAs with appropriate parties

that operate natural gas facilities which interconnect with Transporter's

system (hereinafter OBA Party). Such OBAs shall specify the gas custody

transfer procedures to be followed by Transporter and the OBA Party for the

confirmation of scheduled quantities at points of interconnection with the OBA

Party. Such OBAs will provide that any variance between actual quantities and

scheduled and confirmed quantities for any day shall be resolved in-kind

promptly or cashed-out pursuant to the terms of the OBAs. To facilitate such

determination of variances on a timely basis, Transporter and the OBA Party

will agree in the OBA on necessary measurement and accounting procedures.

Transporter shall post on its Internet Website those interconnect points which

are subject to an OBA.

 

2. It is Transporter's intent to negotiate and execute OBAs on a

non-discriminatory basis with any OBA Party. However, Transporter shall have

no obligation to negotiate and execute OBAs with any party that:

 

(a) is not creditworthy as determined pursuant to Section 17

(Creditworthiness) of Transporter's General Terms and Conditions;

 

(b) does not maintain dispatching operations which are staffed on a

continuous basis;

 

(c) does not have electronic flow measurement equipment to which Transporter

has access at the interconnect points which are proposed to be subject to the

OBA;

 

(d) does not commit to timely and final determination of variances based on

prompt in-kind resolution provisions.