Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 07/01/1993, Docket: RS92- 18-002, Status: Effective

Original Sheet No. 61B Original Sheet No. 61B : Superseded

 

GENERAL TERMS AND CONDITIONS (Continued)

 

a. Monthly Imbalances

 

Operating conditions may, from time to time, cause a temporary

and unintentional imbalance between the total dth of natural gas

that Seller receives under the executed Service Agreement and the

quantities of natural gas that Seller delivers under the executed

Service Agreement. Seller and Buyer shall cooperate to eliminate

any such imbalances. As soon as practicable Seller shall notify

Buyer of such imbalance and the necessity to take corrective

action within the next 48 hours. If necessary to protect the

integrity of its system, Seller may require Buyer to take

corrective action within less than 48 hours. In the event Buyer

fails to take corrective action within 45 days from the end of

the 48 hour notification period, Buyer shall be subject to the

following monthly imbalance charge provisions:

 

1. Overdelivery Penalty: Pipeline will notify Customer within

15 days after the end of any billing month in which Customer

delivered or caused to be delivered more than 104% of the

quantity of gas than was taken from Pipeline on Customer's

behalf. In the event Customer fails to take or cause to be

taken within 45 days of notification a quantity of gas

sufficient to balance deliveries to Pipeline with the

quantities taken from Pipeline, an imbalance shall be

imposed. The imbalance penalty shall be the retention by

Seller at no cost and free and clear of any adverse claims of

any remaining net balance of overdeliveries in excess of 104%

existing at the end of said 45 day period.

 

2. Underdelivery Penalty: Pipeline will notify Customer within

15 days after the end of any billing month in which Customer

took or caused to be taken from Pipeline quantities which

exceed by more than four percent the quantities received by

Pipeline pursuant to the provisions of Section 13 of the

General Terms and Conditions of this FERC Gas Tariff. In the

event Customer fails to deliver or cause to be delivered

within 45 days of notification a quantity of gas sufficient

to balance deliveries to Pipeline with the quantity taken

from Seller, an imbalance penalty shall be imposed of $10/dth

multiplied by the remaining net balance of underdeliveries

in excess of four percent which exists at the end of the 45

day period.