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Original Sheet No. 551 Original Sheet No. 551 : Superseded

 

OPERATIONAL BALANCING AGREEMENT

(Continued)

 

ARTICLE II

 

RECONCILIATION OF OPERATIONAL IMBALANCES

 

2.1 The Parties intend that the quantities of gas actually delivered and received each day at the

Interconnection Point(s) will equal the confirmed nominations, and the party controlling the flow at the

Interconnection Point(s), as set forth on Exhibit "A", shall control such flow accordingly. Each Party shall

allocate the volumes to be delivered and received at the Interconnection Point(s) among the Shippers in

accordance with the confirmed nominations. Any difference between the aggregate quantity of gas nominated and

the aggregate quantity of gas actually delivered at the Interconnection Point(s) on any given day by each

Party shall constitute the Operational Imbalance for each Party for that day (the "Daily Operational

Imbalance").

 

2.2 During any given month, estimated meter quantities (mcf) shall be used by each Party on a

daily basis to determine the estimated Daily Operational Imbalance, if any, at the Interconnection Point(s)

for any given day. The Parties shall promptly make such physical flow adjustments as may be necessary in

order to prevent, reduce or eliminate any Daily Operational Imbalance. The daily variance in the estimated

Daily Operational Imbalance should not exceed five percent (5%) of the aggregate quantities nominated for the

day, nor two percent (2%) of the aggregate monthly quantities.

 

2.3 The sum of estimated Daily Operational Imbalances for each day in a given month shall

constitute the estimated Monthly Operational Imbalance for such month. By the fifth day of the month

following any given month in which an estimated Monthly Operational Imbalance arises, the measuring Party, as

identified on Exhibit "A", will notify the other Party as to the estimated Monthly Operational Imbalance for

the prior month, and the Parties shall promptly make such physical flow modifications as may be necessary to

reduce or eliminate any such Monthly Operational Imbalance.

 

2.4 The actual MMBtu at the Interconnection Point(s) each month will be determined and the actual

Monthly Operational Imbalance communicated by the allocating Party to the other Party in writing as soon as

possible, but in no case later than the fifteenth day of the month following the month in which the actual

Monthly Operational Imbalances arises. The Parties shall correct any actual Monthly Operational Imbalance by

the end of the month within which the actual Monthly Operational Imbalance is determined, or within such

longer period of time as may be agreed to by the Parties. Deliveries of gas to correct actual Monthly

Operational Imbalances may be made between the parties at the Interconnection Point(s) set forth on Exhibit

"A", or at any other point of interconnection between the respective facilities of the Parties as may be

mutually agreed to by the Parties.

 

2.5 Any gas volumes received and delivered to correct an Operational Imbalance shall be adjusted

for variations in Btu content in accordance with the applicable provisions of the FERC Gas Tariff of the Party

which received the gas. Measurement of gas for all purposes hereunder shall be in accordance with the

provisions set forth in the measuring Party's then effective FERC Gas Tariff.

 

2.6 In the event that a capacity constraint occurs on either Party's pipeline system which

results in curtailment of deliveries through an Interconnection Point, the Party on whose system the

constraint has occurred shall determine the appropriate reallocation of quantities due to curtailment as

pursuant to the provisions of Article I. If the constraint occurs at the Interconnection Point, the Party

which owns the meter at the Interconnection Point shall be deemed to have the constraint on its system.