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. 233 Original Sheet No. 233 : Effective

 

 

PRO FORMA

OPERATIONAL BALANCING AGREEMENT

(Continued)

 

 

following prices for each stated percentage level up to its

Net Imbalance Percentage:

 

Imbalance Percentage of

Percentage Index Price

 

0 to 5% 100% of High Price

> 5 to 10% 115% of High Price

>10 to 15% 125% of High Price

>15 to 20% 140% of High Price

>20% 150% of High Price

 

(b) The Index Price shall be determined pursuant to the procedures set

forth on Exhibit C to this Agreement. The Low Price is equal to the

lowest of the spot prices which comprise the Index Price during the

month in which the Monthly Operational Imbalance was incurred. The

High Price is equal to the highest of the spot prices which comprise

the Index Price during the month in which the Monthly Operational

Imbalance was incurred.

 

(c) It is agreed that in the event Destin owes Operator any payments

under Section 2.2(a)(i) above from a previous month which are past

due, Operator shall have the right hereunder to offset payments it

owes to Destin under Section 2.2(a)(ii) above by such past due

amounts (inclusive of interest). It is agreed that in the event

Operator owes Destin any payments under Section 2.2(a)(ii) above from

a previous month which are past due, Destin shall have the right

hereunder to offset payments it owes to Operator under Section

2.2(a)(i) above by such past due amounts (inclusive of interest).

 

(d) The Parties agree that _______________________ will be responsible

for billing the "cash out" amounts under this Agreement. Actual

metered volumes, adjusted for actual Btu content, shall be used for