Midwestern Gas Transmission Company
Third Revised Volume No. 1
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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
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
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.