Guardian Pipeline, L.L.C.

Original Volume No. 1

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Effective Date: 02/01/2003, Docket: RP02-530-001, Status: Effective

Original Sheet No. 218 Original Sheet No. 218 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

34. FLOW THROUGH OF CASH-OUT REVENUES AND PENALTIES IN EXCESS OF

COSTS

 

34.1 Flow Through of Cash-Out Revenues in Excess of Costs and

Recovery of Costs in Excess of Revenues

 

(a) This section sets forth the procedures under which

Transporter will flow through to Shippers, for each

Month, any excess of revenues received over costs

incurred or excess of costs incurred over revenues

received, as applicable, under the cash-out

provisions in Sections 19.3(c) and 19.3(d).

 

(b) Within ten (10) days of the close of the imbalance

trading and netting period for each Month in

accordance with Section 19.2 of these GT&C,

Guardian shall determine the amount, if any, of

cash-out revenues in excess of costs or costs in

excess of cash-out revenues for such Month.

 

(c) The net cash-out revenues in excess of costs, if

any, pursuant to the provisions of Section 34.1(b)

shall be credited proportionately each Month to the

next monthly invoice of each Shipper that

transported Natural Gas on Transporter's Pipeline

Facilities during a Month in which net cash-out

revenues in excess of costs were accrued by

Transporter, with such credits based on each

Shipper's throughput as a percentage of total

throughput for such Month; provided, however,

Transporter shall retain, and not credit, excess

revenues up to a cumulative balance of $200,000.00.

Such retained balance, if any, shall be used by

Transporter to offset any excess costs not

recovered pursuant to Section 34.1(d), and such

balance, if any, shall accrue interest at the

Commission-approved rate.

 

(d) The net costs, if any, pursuant to the provisions

of Section 34.1(b) shall be allocated

proportionately, based on amount of imbalance

causing incurrence of excess costs to each Shipper

whose imbalances during any Day or Days of the

Month caused Transporter to incur costs in excess

of cash-out revenues. Upon request, Transporter

shall demonstrate to Shipper the basis for

Transporter's determination that Shipper's

activities caused Transporter to incur excess

costs.