Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 09/04/2008, Docket: CP07-44-005, Status: Effective

Original Sheet No. 269 Original Sheet No. 269

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

20. OPERATIONAL BALANCING AGREEMENTS ("OBAs") (continued)

 

20.2 Transporter shall have no obligation to negotiate and execute

OBAs with any OBA Party that:

 

(a) is not creditworthy as determined pursuant to Section 27

of the GT&C; for purposes of such provision, references

to Shipper shall refer to the OBA Party;

 

(b) does not maintain dispatching operations which are

staffed on a continuous around-the-clock basis every day

of the year;

 

(c) would cause the level of regulation which Transporter is

subject to prior to the execution of the applicable OBA

to increase; or

 

(d) does not commit to timely determination of variances

based on reasonable available measurement technology; or

 

(e) has not demonstrated operational consistency

commensurate with the OBA relationship over a minimum

period of three years.

 

20.3 If Receipt Point Operators or Delivery Point Operators have not

executed an OBA with Transporter as described in Section 20.1,

then any variance between actual quantities and scheduled

quantities for any Day for that Receipt or Delivery Point shall

be cumulated for the Month for the Shipper(s) responsible for the

imbalance, and such Monthly Imbalances will be subject to the

Cashout of Monthly Imbalances as set forth in Section 8 herein.

 

20.4 Resolution of OBA Imbalance: Transporter and the OBA Party shall

resolve any imbalances in accordance with the procedures set

forth in the OBA. Unless otherwise agreed, OBA imbalances shall

be resolved on a monthly basis by Cashout mechanism.