Michigan Gas Storage Company

First Revised Volume No 1

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Effective Date: 11/01/1993, Docket: RS92- 7-001, Status: Effective

Original Sheet No. 42 Original Sheet No. 42 : Superseded

 

GENERAL TERMS AND CONDITIONS

(continued)

 

Quantity, Transporter will, in good faith, attempt to

transport the same, but in the event any such excess

delivery would jeopardize the safety of Transporter's

operations and/or its ability to meet its contract

commitments to others, such decisions being solely within

the judgement and discretion of Transporter, Transporter

shall have the right to refuse to deliver, without any

liability on the part of Transporter to Shipper or any

other person, all or such part of said excess delivery as

Transporter, in its sole judgement and discretion, deems

necessary, and shall notify Shipper accordingly.

 

(b) Should the quantities of gas injected into or

withdrawn from storage exceed the MSQ, MDIQ, or MDWQ, MGS

will, in good faith, attempt to provide the service

requested, but in the event any such excess service would

jeopardize the safety of MGS's operations and/or its

ability to meet its contract commitments to others, such

decisions being solely within the judgement and

discretion of MGS, MGS shall have the right to deny,

without any liability on the part of MGS to Shipper or

any other person, all or such part of said excess service

as MGS, in its sole judgement and discretion, deems

necessary, and shall notify Shipper accordingly.

 

3.8 Adjustments to Equivalent Quantities

Following receipt of Monthly statements, the parties

shall adjust the receipts and deliveries of Gas within

sixty (60) Days if practicable, to balance any excess or

deficiency. In the event the quantities of Gas received

and delivered are not in balance at the end of the term

of the Agreement, then such balance shall be achieved

within sixty (60) Days by extending receipts or

deliveries as applicable at the appropriate Point of

Receipt or Point of Delivery until such balance is

achieved or by such other method as is then mutually

agreed upon by the parties hereto. To the extent that

the monthly imbalance exceeds five (5)% of actual

deliveries the balancing provisions of Rate Schedules FT

and IT may be invoked.

 

3.9 Pressure at Point of Receipt

Shipper shall cause the Gas to be delivered at the Point

of Receipt at a pressure sufficient to allow the Gas to

enter Transporter's existing pipeline system.

 

3.10 Pressure at Point of Delivery

Transporter shall redeliver the Gas to Shipper at the

Point of Delivery hereunder at its prevailing line

pressure as such may vary from time to time.

 

3.11 Limitation of Service

MGS shall not be required to perform service under the

Agreement on behalf of any party that fails to comply

with any and all of the terms of the Agreement and with

these General Terms and Conditions, provided that if

service has already begun, Transporter may terminate the

service after any necessary authorizations by any

regulatory bodies having jurisdiction.