Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/1998, Docket: CP96-655-003, Status: Effective

Original Sheet No. 230 Original Sheet No. 230 : Effective

 

 

PRO FORMA

OPERATIONAL BALANCING AGREEMENT

(Continued)

 

delivered or received by it at the Point are equal to the Scheduled

Quantities. Destin shall use all reasonable efforts to ensure that the

quantities actually received or delivered by it at the Point are equal to the

Scheduled Quantities. Each Party agrees to allocate volumes to be delivered

and received at the Point each day to each Party's respective shippers based

upon the Scheduled Quantities set forth in Section 1.1 above.

 

1.3 Allocation of Variances - The sum of the daily differences between the

Scheduled Quantities set forth in Section 1.1 above for each day and the

actual quantity delivered and/or received at the Point on each day during the

calendar month shall be the Monthly Operational Imbalance. Any Monthly

Operational Imbalances will be resolved in accordance with Section 2.2

herein, unless mutually agreed otherwise.

 

1.4 Penalties - If Destin is experiencing operational difficulties because of the

variance between scheduled nominations and actual flows at the Point, the

provisions of Section 25 of the General Terms and Conditions shall apply.

 

1.5 Reports on Actual Deliveries - Actual deliveries and receipts at the Point

shall be determined by the measured volumes recorded at the Point.

Measurement of gas at the Point shall be in accordance with the provisions of

the currently effective FERC Gas Tariff of the Point Operator set forth on

Exhibit A hereto. Any gas received or delivered at the Point shall be

adjusted for variation in Btu content and shall be reported in Dths unless

the parties mutually agree otherwise. The Party that owns the primary

measurement facilities at the Point shall (a) allow the other Party to tie

into such equipment to receive accurate electronic measurement data on a

"real time" basis; and (b) provide to the other Party the measured volumes,

adjusted for Btu content, recorded each day at the Point within two business

days thereafter, unless the Parties agree otherwise.

 

1.6 Capacity Constraints - Each Party shall be responsible for the scheduling and

management of its respective pipeline capacity and pipeline system