Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 06/01/2010, Docket: RP10-198-000, Status: Suspended

Second Revised Sheet No. 137 Second Revised Sheet No. 137

Superseding: First Revised Sheet No. 137

 

SIT RATE SCHEDULE

STORAGE IN TRANSIT (Cont'd)

 

3. CALCULATING BALANCING QUANTITIES AND RELATED PENALTIES

 

(a) For each Day on which Shipper receives service from Transporter under this Rate Schedule,

Transporter shall calculate for Shipper an Undertendered Balance Quantity (UBQ) or an Overtendered Balance

Quantity (OBQ). If the actual daily delivery quantity under those Transportation Service Agreements

designated by Shipper for SIT service exceeds the actual daily receipt quantity (less Retainage assessed under

the applicable Transportation Service Agreement(s) under those Service Agreements, the difference shall

constitute Shipper's UBQ for that Day. If the actual daily delivery quantity under those Transportation

Service Agreements designated by Shipper for SIT service is less than the actual daily receipt quantity (less

Retainage assessed under the applicable Transportation Service Agreement(s)) under those Service Agreements,

the difference shall constitute Shipper's OBQ for that Day. Transporter shall maintain an account in which

Transporter shall separately record Shipper's UBQs and OBQs on a daily basis. Shipper shall be billed a

commodity charge, as described in Section 5 below, on the daily change, if any, in Shipper's UBQ or OBQ.

 

(b) The running net balance of Shipper's UBQs and OBQs shall be Shipper's Imbalance Quantity.

Twice during any Month, Shipper shall be required to (i) eliminate any existing Imbalance Quantity, (ii)

convert any outstanding UBQ to an OBQ, or (iii) convert any outstanding OBQ to a UBQ. Maintaining an

Imbalance Quantity of zero for two or more consecutive days within a Month will satisfy this requirement. For

each Month during which Shipper fails to satisfy this requirement, Shipper shall pay Transporter a penalty of

$0.25 per Dth of its existing Imbalance Quantity for each day of such Month. If there is an interruption of

Shipper's service under this Rate Schedule, Transporter will waive the requirement that the foregoing

requirements specified in (i), (ii) or (iii) immediately above be accomplished within a Month.

 

(c) If Shipper's SIT Service Agreement is terminated and Shipper has an OBQ that is not corrected

within 60 days of such termination, the quantities underlying that OBQ shall be forfeited to Transporter free

and clear of all liens and encumbrances. Transporter shall post such forfeited quantities on its EBB as gas

available for sale to the highest bidder within a 24 hour notice period. Such posting may provide as a

condition of sale that such gas be withdrawn from storage within a period of time to be specified in the

notice. Upon receipt of payment, Transporter shall treat the forfeited gas proceeds as Penalty Revenues as

defined in Section 19.6 of the General Terms and Conditions.

 

(d) If Shipper's SIT Service Agreement is terminated and Shipper has a UBQ that is not corrected

within 60 days of such termination, Shipper shall be assessed and billed a penalty for the quantities

comprising such UBQ, grossed up for the Retainage percentages applicable to Transporter's ITS Rate Schedule.

The penalty shall be 120 percent of the Spot Market Price for the Month during which such quantities are made

up by Transporter. For purposes of this Rate Schedule, "Spot Market Price" shall mean, for the applicable

Month, the contract index price for gas delivered to "Columbia Gas Transmission, LLC, Appalachia", as reported

in Inside FERC's Gas Market Report or successor publication.

 

(e) With respect to penalties imposed pursuant to Section 3(d) above, and for purposes of

calculating Penalty Revenues pursuant to Section 19.6 of the General Terms and Conditions, any amount above

100 percent of the Spot Market Price, net of Transporter's costs, will be treated as a penalty revenue to be

credited to non-offending Shippers.