Midwestern Gas Transmission Company
Third Revised Volume No. 1
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Effective Date: 08/09/2006, Docket: RP06-430-001, Status: Effective
Fourth Revised Sheet No. 418 Fourth Revised Sheet No. 418 : Effective
Superseding: Second Revised Sheet No. 418
MIDWESTERN GAS TRANSMISSION COMPANY
OPERATIONAL BALANCING AGREEMENT
(For Use at Receipt Points)
ARTICLE 2 - NOMINATIONS AND CONFIRMATIONS
If Balancing party fails to confirm the quantities to be transported at any Receipt
Point(s) in accordance with the above, and such failure continues for two Business
Days or more (whether or not such days are consecutive) after 24 hour written notice
to the Balancing Party by Company for each occurrence of Balancing Party's failure to
confirm, then the affected Receipt Point(s) shall be deleted from Exhibit A upon
written notice from Company at the end of that calendar month.
2.2 Allocations Based on Scheduled Quantities - The Parties intend that the quantity
actually delivered at the Receipt Point(s) will equal the Scheduled Quantities.
Balancing Party shall use all reasonable efforts to ensure that the quantities
actually received at the Receipt Point(s) equal the Scheduled Quantities. Unless
prohibited by applicable law or regulation, all transportation services provided by
Company shall be allocated each day in accordance with Rate Schedule LMS-PA of
Company's Tariff or by such method as may be mutually agreed to by both Parties.
2.3 Allocation of Variances - The difference on any day between the Scheduled Quantities
at all Receipt Points and the total actual quantity received at the Receipt Point(s)
shall be the Daily Variance and shall be allocated to this Agreement and resolved
pursuant to the provisions of Rate Schedule LMS-PA. The difference between the sum
of the Scheduled Quantities during a calendar month and the total actual quantity
received at the Receipt Point(s), during the calendar month shall be the Monthly
Operational Imbalance. Any Monthly Operational Imbalances will be corrected in
accordance with Article 3.
2.4 Reports on Actual Deliveries - Should Company not have the ability to monitor actual
deliveries at any Receipt Point(s) on a daily basis, Balancing Party shall provide to
Company the best available information compiled on a daily basis on the actual
receipts at such Receipt Point(s) within two Business Days after the date of receipt.
Furthermore, the Balancing Party shall provide or have provided to Company meter
statements within five (5) Business Days after the close of a calendar month at any
Receipt Point(s) where Company does not operate the meter. If the Balancing Party
does not provide such information or meter statements at any Receipt Point(s), or the
information provided contains significant inaccuracies as reasonably determined by
Company, and such conditions continue for fifteen days or more (whether or not such
days are consecutive) after the first notice to the Balancing Party, then all
affected Receipt Points shall be deleted from this Agreement upon written notice from
Company at the end of that calendar month.
2.5 Unauthorized Overruns - Balancing Party may not deliver gas at a Receipt Point in
excess of the Daily Limit applicable to a Receipt Point, Balancing Party shall be
subject to an Unauthorized Overrun Charge of fifteen dollars ($15.00) for each
Dekatherms of excess volumes delivered. The Daily Limit applicable to a Receipt
Point shall be stated in an Operational Flow Order issued pursuant to Section 8 of
the General Terms and Conditions of Company's Tariff.
ARTICLE 3 - CORRECTION OF OPERATIONAL IMBALANCES
3.1 Corrections During the Month - Estimated metered quantities, or actual metered
quantities where available, shall be used by Company for purposes of adjustments
under this Section on a daily basis during the calendar month to determine the
estimated Operational Imbalance at (all of) the Receipt Point(s). Company shall make