East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 04/20/2008, Docket: RP08-277-000, Status: Effective

First Revised Sheet No. 592 First Revised Sheet No. 592 : Effective

Superseding: Original Sheet No. 592

 

BALANCING AGREEMENT

(For Use by Aggregator at Points of Delivery)

 

ARTICLE II

NOMINATIONS AND CONFIRMATIONS

 

2.1 Confirmation of Nominations - Prior to the beginning of the Month in

which service is to commence, Transporter and Balancing Party shall

confirm or cause to be confirmed the quantities nominated to be

transported by Transporter to the Delivery Point(s) commencing on the

first Day of the Month following the Confirmation. The quantities

confirmed through this process shall become the "Scheduled Quantities".

Balancing Party shall reconfirm any modification to such Confirmations

or cause such modification to be re-confirmed prior to the commencement

of the revised service. Transporter shall notify Balancing Party or

Balancing Party's designee of any problem(s) regarding the scheduling of

gas in accordance with Confirmations made hereunder within one Business

Day after such Confirmation, unless mutually agreed to otherwise.

Balancing Party shall notify Transporter or cause Transporter to be

notified of any errors in the quantities scheduled pursuant to its

Confirmation within one Business Day of receipt of such information from

Transporter. If Balancing Party fails to confirm the quantities to be

transported to any Delivery Point(s) in accordance with the above, and

such failure continues for two Business Days or more (whether or not

such Days are consecutive) after 24-hour written notice to the Balancing

Party by Transporter for each occurrence of Balancing Party's failure to

confirm, then the affected Delivery Points shall be deleted from Exhibit

A upon written notice from Transporter at the end of that calendar

month.

 

2.2 Allocation Based on Scheduled Quantities - The Parties intend that the

quantity actually delivered at Delivery Point(s) will equal the

Scheduled Quantities. Balancing Party shall use all reasonable efforts

to ensure that the quantities actually delivered at the Delivery

Point(s) are equal to the Scheduled Quantities. Unless prohibited by

applicable law or regulation, all transportation services by Transporter

shall be allocated each Day based upon the Scheduled Quantities or by

such other methods as may be mutually agreed to by both Parties.

 

2.3 Allocations of Variances - The difference on any Day between the

Scheduled Quantities set forth in Section 2.1 above and the actual

quantity delivered at the Delivery Point(s) shall be the Daily Variance

and shall be allocated to this Agreement. The difference between the

sum of the Scheduled Quantities during a calendar month and the total

actual quantity delivered at the Delivery Point(s) during the calendar

month shall be the Monthly Operational Imbalance. Any Monthly

Operational Imbalances will be corrected in accordance with Article III.

 

2.4 Deliveries in Excess of Daily Limit - Balancing Party may not take gas

in excess of the adjusted daily variance tolerance applicable to the

Delivery Point(s) as specified in an Operational Flow Order issued

pursuant to Section 14 of the General Terms and Conditions. Any such

takes will be treated as unauthorized overruns and shall be subject to

an Action Alert Penalty or a Balancing Alert Penalty, as applicable, in

accord with Section 14.9 of the General Terms and Conditions of

Transporter's FERC Gas Tariff.