Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 152 Original Sheet No. 152

 

PAL RATE SCHEDULE

PARKING AND LENDING SERVICE

(Continued)

 

5. OPERATIONAL REQUIREMENTS OF TRANSPORTER

 

(a) Shipper may be required, upon notification from Transporter, to cease or reduce deliveries to, or

receipts from, Transporter hereunder within the day consistent with Transporter's operating requirements.

Further, Shipper may be required to return loaned quantities or remove parked quantities upon notification by

Transporter via Electronic Notice Delivery. Transporter will not recall from (or require withdrawal by) any

Shipper, on any day, any quantity greater than one-tenth (1/10) of the Shipper's outstanding park or loan

balance, but in no event shall Transporter be restricted when recalling (or requiring the withdrawal of) less

than 5,000 Dth from any Shipper on any day nor will any Shipper be permitted to extend the term of its park or

loan by reason of this limitation. Transporter's notification shall specify the time frame within which

parked quantities shall be removed and/or loaned quantities shall be returned, consistent with Transporter's

operating conditions, but in no event shall the specified time be sooner than the next day after Transporter's

notification, subject to the following conditions:

 

(i) In the event that Shipper makes a timely and valid nomination, which Transporter subsequently confirms,

in response to notification by Transporter to remove parked quantities and/or return loaned quantities,

Shipper shall be deemed to have complied with Transporter's notification; and

 

(ii) Unless otherwise agreed by Shipper and Transporter: (1) any parked quantity not removed within a time

frame specified by Transporter's notice shall become the property of Transporter at no cost to Transporter

free and clear of any adverse claims; (2) any loaned quantity not returned within the time frame specified by

Transporter's notice shall be sold to Shipper at 150 percent of the Spot Market Price for each Dekatherm.

"Spot Market Price", for purposes of this Section, shall mean, for each Dekatherm on each applicable day on

which the gas was to be repaid, the "Columbia Gas, Appalachia, Midpoint" price index as published in Gas

Daily's Daily Price Survey, or successor publication.

 

(b) In the event parked quantities remain in Transporter's system and/or loaned quantities have not been

returned to Transporter's system at the expiration of any Agreement executed by Shipper and Transporter,

Transporter and Shipper may mutually agree to an extended time frame and/or modified terms, including the

rate, of such Agreement. In the event that Shipper and Transporter are unable to come to such Agreement,

Transporter shall notify Shipper, and Shipper shall nominate for removal of the parked quantities and/or

return of the loaned quantities within the time frame specified in Transporter's notice, which in no instance

shall be less than ten (10) days; provided, however, that Transporter shall always have the right to recall up

to 5,000 Dth from Shipper on any day. Any parked quantity not removed within the time frame specified by

Transporter's notice shall become the property of Transporter at no cost to Transporter, free and clear of any

adverse claims. Any loaned quantities not returned within the time frame specified by Transporter's notice

shall be sold to Shipper at 150 percent of the Spot Market Price for each Dekatherm. Transporter shall post

such forfeited quantities on its Internet EBB as gas available for sale to the highest bidder within a 24-hour

notice period. 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. If Shipper does not return loaned

quantities within the time frame specified by Transporter's notice, Shipper shall pay Transporter for the cost

of each Dth of the loaned quantity. The payment will be determined by selling the gas to Shipper at 150

percent of the Spot Market Price. "Spot Market Price", for purposes of this Section, shall mean, for each

Dekatherm, on each applicable day on which the gas was to be repaid, the "Columbia Gas, Appalachia, Midpoint"

price index as published in Gas Daily's Daily Price Survey, or successor publication. 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 back to non-offending Shippers.

 

6. GENERAL TERMS AND CONDITIONS

 

All of the General Terms and Conditions are applicable to this Rate Schedule and are hereby made a part

hereof, with the exception of Sections 4, 11, 14, 27, 33 through 36, and 38 through 46.