ANR Pipeline Company

Second Revised Volume No. 1

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Effective Date: 05/01/2005, Docket: RP02-335-005, Status: Effective

Sixth Revised Sheet No. 140 Sixth Revised Sheet No. 140 : Effective

Superseding: Third Revised Sheet No. 140

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

provide accumulated imbalance data to Shipper requesting such data by

electronic or other available means of communication within

forty-eight (48) hours of such request during the Service Month.

 

15.2 Cashout of Imbalances at Agreement Expiration. At the time of expiration of

an Agreement, all imbalances shall be paid for according to the provisions of

Section 15.1 above.

 

15.3 Upstream Transportation. In the event that Transporter acts as agent on

behalf of any Shipper in obtaining transportation service on any upstream

pipeline, the cashout provisions (if any) of any such upstream pipeline shall

be applicable to such upstream transportation, and not the provisions of this

Section 15.

 

15.4 Penalties. Failure of Shipper to fulfill responsibilities, during the period

of Force Majeure, which contribute to Excess Quantities or Deficient

Quantities pursuant to the Cashout provisions of this Section 15 shall result

in the use by Transporter of the applicable Cashout Price as to each Dekatherm

for which payments are due under such provisions.

 

15.5 System Cashout Mechanism. Transporter shall establish an annual mechanism to

determine the results of implementing this Cashout provision. Such mechanism

shall calculate, on a system-wide basis, the annual gross revenue balance

(positive or negative) derived from the Cashout program, utilizing the

following procedures:

 

(a) Commencing May 1, 1998, and each May 1 thereafter, Transporter shall

calculate the Net Cashout Activity, which shall be defined as the sum of

(1) actual net revenues attributable to the operation of the Cashout

program for the preceding calendar year; (2) any prior negative balance

from any previous redetermination, pursuant to Section 15.5(b), below;

and (3) any prior positive balance(s) from any previous redetermination,

pursuant to Section 15.5(c), below;

 

(b) Any Net Cashout Activity that is a negative balance shall be divided by

the total of all Cashout volumes bought and sold during the preceding

calendar year to derive a Cashout Price Surcharge. Transporter shall

file to make such Cashout Price Surcharge effective June 1, for the next

succeeding twelve (12) Month period. The Cashout Price Surcharge as

stated on Sheet No. 17 will be subtracted from the Cashout Price where

Excess Quantities are being Cashed Out, and will be added to the Cashout

Price where Deficient Quantities are being Cashed Out.