El Paso Natural Gas Company

First Revised Volume No. 1-A

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Effective Date: 10/01/1993, Docket: RS92- 60-016, Status: Effective

1st Rev Sub Original Sheet No. 240G 1st Rev Sub Original Sheet No. 240G : Superseded

 

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

 

20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)

 

20.11 Resolution of Imbalances (Continued)

 

(g) Netting of Contracts - For purposes of resolving an

imbalance with a Shipper, El Paso is willing to

negotiate, on a non-discriminatory basis, netting of gas

imbalances, adjusted to reflect a common point at which

the imbalance is held, between contracts with such

Shipper pursuant to the following conditions:

 

(i) Netting between downstream interconnect and mainline

agreement imbalances is negotiable if the agreement

has the interconnect point as a delivery point.

 

(ii) Netting between mainline agreement imbalances (for

similar transportation service) is negotiable.

 

(iii) Netting between gathering/pooling and mainline

agreements is negotiable if the gathering/pooling

basin is a receipt point on the mainline agreement.

 

For any specific situation not discussed above, El Paso

is willing to negotiate a transportation transaction

which could have the effect of netting imbalances.

 

20.12 Unauthorized Overpull Penalty

 

(a) A penalty shall be levied by El Paso and paid in dollars

by any receiving party (any Shipper, Local Distribution

Company, Direct Sales Customer or other party who

operates the facilities that receive the gas transported

by El Paso) who exceeds the limits specified below. Such

penalty is applicable when, in times of capacity

constraints, or when, due to unforeseen circumstances

beyond El Paso's control, El Paso has determined that is

ability to maintain scheduled deliveries to all receiving

parties is materially threatened due to insufficient

pressures in El Paso's system and El Paso so notifies

said receiving parties. Nothing herein shall limit

El Paso's right to take any further actions required to

maintain the integrity of its system operations.