Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 10/01/2006, Docket: RP06-583-000, Status: Effective

Third Revised Sheet No. 80 Third Revised Sheet No. 80 : Effective

Superseding: Second Revised Sheet No. 80

 

RATE SCHEDULE PAL

PARK AND LOAN SERVICE

 

 

5. NOTIFICATIONS, ALLOCATIONS AND CURTAILMENT

 

5.1 For purposes of restricting PAL services, Company will give priority to PAL

Agreements with the highest rate commitment to Company. For purposes of

calculating the daily rate commitment, Buyers willing to pay more than the

Maximum Rate listed on the Summary of Rates and Charges of this FERC Gas Tariff

will be considered to be paying the Maximum Rate. Service will be allocated or

curtailed on a pro rata basis among Buyers willing to make the same daily rate

commitment to Company for PAL services.

 

5.2 Buyer may be required, upon notification from Company, to suspend or reduce

deliveries for the agreed upon Park Service, or receipts for the agreed upon

Loan service. Further, Buyer may be required, upon notification from Company,

to remove quantities of gas previously provided to Company under the Park

service, or return quantities of gas previously loaned to Buyer under the Loan

service. Such notification shall be by telephone, and also by either Company's

Information Postings web site, e-mail, or facsimile.

 

5.3 Should Company notify Buyer to remove or return quantities of gas pursuant to

Subsection 5.2, Company's notification shall specify the time frame within

which Park service quantities shall be removed, and/or Loan service quantities

shall be returned. Such notifications shall be consistent with Company's

operating conditions, but in no event shall the specified time frame be less

than three (3) business days from the date of Company's notification unless

Company and Buyer mutually agree to a different time frame. The obligation of

Buyer to comply with the issued notification shall be monitored until such time

as Company is able to recommence the Park and/or Loan services.

 

5.4 In the event Buyer makes a timely nomination in response to a notification by

Company pursuant to Subsection 5.2, the obligation of Buyer to comply with that

notification shall be suspended until such time as Company's operational

conditions allow Company to schedule the nomination.

 

6. FAILURE BY BUYER TO RESPOND

 

6.1 Park Service

 

(a) In the event any of the following occurs, parked quantities shall become

the property of Company at no cost to Company, free and clear of any

adverse claims:

 

(i) Company's prevailing operations require Company to notify Buyer

that receipts of parked quantities must be suspended or be reduced,

and Buyer fails to comply with such notification; and/or

 

(ii) Company's prevailing operations require Company to notify Buyer

that all or part of Buyer's parked quantities must be removed, and

Buyer fails to comply within the specified time frame; and/or

 

(iii) Subject to Subsection 2.4 herein, the PAL account reflects a

balance at the termination date of the associated Exhibit A to an

executed PAL Agreement.

 

(b) If, pursuant to Subsection 6.1(a)(i), Company notifies Buyer that receipts

of parked quantities must be suspended or be reduced, only those

quantities parked in violation of the notification shall become the

property of Company at no cost to Company, free and clear of any adverse

claims.