Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 08/01/2008, Docket: RP07-174-000, Status: Suspended

Original Sheet No. 216B Original Sheet No. 216B : Suspended

 

GENERAL TERMS AND CONDITIONS (Continued)

 

19.6 Cash-Out Resolution of Cumulative Monthly Imbalances.

 

All Cumulative Monthly Imbalances remaining after netting and trading, negative or positive, will be

cashed-out on a monthly basis pursuant to the following process:

 

(a) Excess Deliveries (Negative Imbalances).

 

Subject to netting and trading pursuant to Section 19.5, if Shipper has accrued a Cumulative

Monthly Imbalance due to Transporter’s delivery of excess gas quantities to Shipper (Negative

Imbalance), then Shipper will pay Transporter the Cash-Out “Sell” Price for the Negative Imbalance at

the Price Tier specified for each stated percentage of excess deliveries. The Cash-Out “Sell” Price

will equal the highest price published weekly during the month, plus the first week of the succeeding

month, by Natural Gas Week for “Columbia Gulf-Rayne” or “Columbia Gulf-Erath.”

 

Percentage of Excess Deliveries Price Tier

 

>0 to 5% 100% of Sell Price

>5 to 10% 115% of Sell Price

>10 to 15% 125% of Sell Price

>15 to 20% 140% of Sell Price

>20% 150% of Sell Price

 

For purposes of determining the Price Tier at which a Negative Imbalance will be cashed out, each price will

apply only to quantities within that tier. For example, if there is a 6% Cumulative Monthly Imbalance,

quantities that comprise the first 5% of the imbalance are priced at 100% of the index price, and quantities

comprising the remaining 1% of the imbalance are priced at 115% of the applicable price.

 

 

(b) Excess Receipts (Positive Imbalances).

 

Subject to netting and trading pursuant to Section 19.5, if Shipper has accrued a Cumulative

Monthly Imbalance due to Transporter’s receipt of excess gas quantities from Shipper (Positive

Imbalance), then Transporter will pay Shipper the Cash-Out “Buy” Price for the Positive Imbalance at

the Price Tier specified for each stated percentage of excess receipts. The Cash-Out “Buy” Price will

equal the lowest price published weekly during the month, plus the first week of the succeeding

month, by Natural Gas Week for “Columbia Gulf-Rayne” or “Columbia Gulf-Erath.”

 

Percentage of Excess Receipts Price Tier

 

>0 to 5% 100% of Buy Price

>5 to 10% 85% of Buy Price

>10 to 15% 75% of Buy Price

>15 to 20% 60% of Buy Price

>20% 50% of Buy Price

 

For purposes of determining the Price Tier at which a Positive Imbalance will be cashed out, each price will

apply only to quantities within that tier. For example, if there is a 6% Cumulative Monthly Imbalance,

quantities that comprise the first 5% of the imbalance are priced at 100% of the index price, and quantities

comprising the remaining 1% of the imbalance are priced at 85% of the applicable price.

 

(c) If the designated publication (or specific postings) is discontinued, Transporter will revise

Sections 19.6(a) and 19.6(b) to substitute another price index that meets the criteria established by

Commission for the publishers of price indices.