Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 02/01/2010, Docket: RP10-253-000, Status: Effective

Fourth Revised Sheet No. 13A Fourth Revised Sheet No. 13A

Superseding: Third Revised Sheet No. 13A

 

GENERAL TERMS AND CONDITIONS

(continued)

 

3.8 Operational Arrangements

 

It is essential that Transporter maintain operational and physical control of its pipeline

system to ensure the integrity of that system and to assure that necessary Transportation

Service is provided to Transporter's Shippers during a contract year. From time to time it may

be necessary for the Transporter to enter into operational arrangements with other pipeline

companies, local distribution companies, Shippers under either Transporter's FERC Gas Tariff,

Original Volumes No. 2 or Second Revised Volume No. 1, or other persons to maintain such

operational and physical control of the pipeline system. Examples of such operational

arrangements include, but are not limited to, operational balancing agreements with pipeline

companies, local distribution companies, Shippers or other operators of facilities

interconnecting with Transporter's system, agreements necessary to effectuate construction and

maintenance on the system, agreements necessary to continue service during unplanned outages or

emergency situations, and operational purchases and sales of gas pursuant to Section 3.8(A)

herein. As necessary, Transporter shall enter into such operational arrangements. These

operational arrangements shall reflect the constraints on the Transporter's pipeline system that

exist from time to time. The intended effect of such operational arrangements on Transporter's

Shippers shall be to ensure the integrity of Transporter's pipeline system to minimize any

inconvenience to Transporter's Shippers and assure that contracted Transportation Service is

provided during a contract year.

 

 

(A) Operational Purchases and Sales

 

(1) Transporter may buy and/or sell gas to the extent necessary to:

(a) maintain system pressure and line pack;

(b) manage system imbalances;

(c) perform other operational functions of Transporter in connection with

transportation, and other similar services; or

(d) otherwise protect the operational integrity of Transporter's system.

 

(2) Any operational purchases and/or sales will be made on an unbundled basis and at Receipt

Points. Operational purchases or sales shall have a lower transportation priority than firm

service.

 

(3) Transporter will post its operational purchases and/or sales quantities for bidding on its

web site or alternatively on third party electronic bulletin boards(s) in accordance with

the applicable bidding provisions which will be posted at the time of the sale. Transporter

reserves the right, in its sole discretion, to:

(a) withdraw its postings;

(b) reject all bids due to operational changes; and

(c) reject any bids which do not meet the terms of the posting, which contain

modifications to the terms of the posting or which contain terms that are

operationally unacceptable.

 

(4) Transporter will file a report on or before May 1 of each year reflecting the operational

purchases/sales for the 12-month period ending the preceding December 31. The report will

indicate:

(a) the source of the operational gas purchased/sold;

(b) the date of the purchase/sale;

(c) volumes;

(d) the purchase/sale price;

(e) the costs and revenues from the purchase/sale;

(f) the disposition of the associated costs and revenues;

(g) an explanation of the purpose of any operational purchase/sale; and

(h) whether Transporter exercised its rights under Section 3.8(A)(3)(b) and (c) to

withdraw postings or reject bids for operational sales transactions.