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
OPERATIONAL BALANCING AGREEMENT
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