Millennium Pipeline Company, L. L. C.

Original Volume No. 1

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Effective Date: 12/22/2008, Docket: CP98-150-011, Status: Effective

Original Sheet No. 130 Original Sheet No. 130

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(d) Month-end allocations shall be based on a measurement closing

date of the fifth business day after the business month. If actual

quantities are not available, quantities will be estimated by the Measuring

Party.

 

8.2 Receipt Point Allocation. Differences at a receipt point shall be

allocated (1) in accordance with the provisions of an OBA, if an OBA covers

such point; or (2) pro rata among all Shippers at that receipt point on the

basis of the Scheduled Daily Receipt Quantities, unless the upstream point

operator providing the point confirmation submits a PDA to the allocating

party before the start of the Gas Day, and Transporter accepts the PDA.

 

8.3 Predetermined Allocation Method (PDA).

 

(a) As used in this Section 8, a PDA is an agreement by or among

point operators, prior to the beginning of the Gas Day, at a receipt or

delivery point to allocate the difference between the scheduled daily

quantity and the actual daily flow of gas in a mutually agreeable manner.

Types of allocation methods include, but are not limited to, Ranked, Pro

Rata, Percentage, Swing, and Operator Provided Value. If the two parties

cannot agree upon an allocation methodology, pro rata based upon confirmed

nominations shall be used as the default method. PDA's shall be provided by

the interconnecting operator, and for multi-tiered allocations, may be

provided by the upstream titleholders or shippers. Interconnecting operators

at receipt locations shall provide a PDA to allocate to upstream

titleholders. Upstream titleholders may provide a PDA to allocate to the

parties taking possession of their gas at a receipt location. Shippers may

provide a PDA to allocate to their nominations at either receipt or delivery

locations.

 

(b) Except as prescribed in Section 8.1(a) of the General Terms

and Conditions, if confirming parties cannot agree upon an allocation

methodology, "pro rata based upon confirmed nominations" shall be used as the

default method.