Midwestern Gas Transmission Company

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 07/09/2004, Docket: RP04-325-000, Status: Effective

First Revised Sheet No. 419 First Revised Sheet No. 419 : Effective

Superseding: Original Sheet No. 419

 

MIDWESTERN GAS TRANSMISSION COMPANY

OPERATIONAL BALANCING AGREEMENT

(For Use at Receipt Points)

 

 

ARTICLE 3 - CORRECTION OF OPERATIONAL IMBALANCES

(Continued)

 

the estimated Daily Variances and Monthly Operational Imbalance available to

Balancing Party by the end of the third Business Day after each production day.

Company may make or Balancing Party may make or cause to be made adjustments in

nominations and actual deliveries upon 24 hours notice by making imbalance make up

nominations pursuant to this Agreement and in accordance with Company's Tariff. Any

adjustments will offset pre-existing imbalances accrued during that month.

 

3.2 Corrections in Subsequent Periods - As soon as practical following the close of each

month, Company will send Balancing Party a statement setting forth the accrued Daily

Variance Charges and the Monthly Operational Imbalance existing at the end of the

prior month. Any Monthly Operational Imbalance shall be resolved in cash in

accordance with Rate Schedule LMS-PA of Company's FERC Gas Tariff Volume No. 1,

unless the Parties mutually agree otherwise.

 

3.3 Measurement of Operational Imbalance - Any gas received or delivered pursuant to this

Agreement shall be adjusted for variation in Btu content. Measurement of gas for all

purposes shall be in accordance with Company's FERC Gas Tariff.

 

3.4 Mutual Assistance Provision - In recognition that Balancing Party has a significant

amount of control over the flow of gas onto Company's system and can assist in

alleviating balancing problems or remedying supply deficiencies, upon mutual

agreement, Balancing Party will increase or decrease flows independent from

nominations. This agreement is subordinate to Balancing Party's contractual

obligations (as well as subject to operational constraints placed on the producers

behind the point by geological or equipment conditions). In any month such

assistance is provided to Company, Company will waive all Daily Variance Charges

amassed by Balancing Party in the month during periods when an OFO is not in effect.

The agreement to provide mutual assistance shall be at the sole discretion of the

Balancing Party and subordinate to the right of the Balancing Party to operate its

properties in a manner that constitutes prudent and efficient operation. Any daily

variance resulting from a Balancing Party's assistance pursuant hereto shall not be

considered in the calculation of such Balancing Party's Monthly Operational

Imbalance.

 

3.5 Operational Integrity - Nothing in this Article 3 shall limit Company's right to take

action as may be required to adjust receipts of gas in order to alleviate conditions

that threaten the integrity of its system.

 

 

ARTICLE 4 - TERM

 

4.1 Duration of Agreement - Subject to the other termination rights provided herein, this

Agreement shall be in full force and effect from the date hereof for a primary term

of one (1) year and shall continue thereafter on a month-to-month basis unless

terminated by either Party giving thirty days prior written notice, with the

termination to be effective at the end of a calendar month. Notwithstanding the

above, if any material problems arise as a result of the provisions of this

Agreement, then the Parties will enter into good faith negotiations to amend this

Agreement to resolve such problems. If the Parties are unable to resolve such

problems as a result of such negotiations, then either Party may terminate this

Agreement upon forty-eight (48) hours prior written notice with the termination to be

effective at the end of a calendar month.