Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2001, Docket: RP02- 14-000, Status: Effective

Original Sheet No. 117 Original Sheet No. 117 : Superseded

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

9.7 General Limitation of Transporter's Obligation. Transporter shall not be required to perform or

continue service on behalf of any Shipper that, within 10 days after receipt of notice from Transporter, fails

to comply with any of the terms of the applicable Rate Schedule and Shipper's Service Agreement with

Transporter; provided however that Shipper's failure to comply with the billing and payment requirements of

this Tariff shall be governed by the provisions of Section 10 (Billing and Payment) of the General Terms and

Conditions. Other provisions of such Rate Schedule notwithstanding, Transporter shall have the right to take

unilateral action to protect the integrity of its system in the event Transporter, in its reasonable

discretion, determines that immediate or irreparable harm to Transporter's facilities or operations will be

caused by Shipper's failure to comply with any of the terms of the applicable Rate Schedule, the terms of

Shipper's Service Agreement with Transporter, or the General Terms and Conditions of this Tariff.

 

9.8 Balancing at Termination of Service Agreement. Following the termination of a Service Agreement,

or at Transporter's discretion in the event Shipper fails to make prompt payment under Section 10 (Billing and

Payment) of the General Terms and Conditions, or if Transporter redetermines Shipper's creditworthiness

pursuant to Section 3.9 of the General Terms and Conditions, Transporter may take the following steps:

 

(a) Shipper under that Service Agreement shall be required to correct any outstanding imbalance

in receipts and deliveries within 60 days after Transporter determines, and notifies Shipper, that such an

imbalance exists, or within such longer period of time agreed to by Shipper and Transporter (the balancing

period). Shipper shall correct in-kind any undertender imbalance by making arrangements upstream of

Transporter for delivery to Transporter to correct such undertender imbalance during the balancing period.

Shipper shall correct in-kind any overtender imbalance by (i) obtaining a service agreement (e.g., under the

IT-1 Rate Schedule) from Transporter pursuant to the terms of this Tariff, and scheduling to receive such

overtender imbalance quantities from Transporter under such service agreement pursuant to the terms of this

Tariff, or (ii) otherwise making arrangements pursuant to this Tariff to dispose of its overtender imbalance.

If, after the end of the balancing period, Transporter determines that an imbalance continues to exist in

Shipper's account, Transporter shall resolve such imbalance as set forth below.

 

(b) If Transporter determines that it delivered quantities to or for Shipper in excess of the

quantities tendered to Transporter by or for Shipper, Transporter shall assess and collect from Shipper a

reimbursement fee. Shipper shall pay Transporter a reimbursement fee for each Dth of such outstanding

imbalance, grossed up for the Retainage percentages applicable to Transporter's IT-1 Rate Schedule. The

reimbursement fee shall be the sum of: (i) 150% of the Spot Market Price for the Month during which such

quantities are made up by Transporter; plus (ii) the cost of transporting such quantities. "Spot Market

Price", for purposes of this Section, shall mean, for the applicable Month, the "Chicago-LDCs, Large End Users

Midpoint" price index, as published in Gas Daily's Daily Price Survey or successor publication. Upon payment

of such charge, the imbalance shall be removed from Shipper's account.

 

(c) If Transporter determines that Shipper tendered to Transporter quantities in excess of the

quantities taken by or for Shipper at the delivery point(s), any such quantities automatically shall be

forfeited by Shipper 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. Upon receipt of payment, Transporter shall credit to the account of the Shipper whose gas was

forfeited 80% of the proceeds from such sale, and shall retain the remaining 20% of such proceeds as a

reimbursement fee.

 

9.9 Transporter may waive the provisions of this Section 9.8 on a nondiscriminatory basis.