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. 427 First Revised Sheet No. 427 : Effective
Superseding: Original Sheet No. 427
MIDWESTERN GAS TRANSMISSION COMPANY
OPERATIONAL BALANCING AGREEMENT
(For Use at Delivery Points)
ARTICLE 3 - CORRECTION OF OPERATIONAL IMBALANCES
3.2 Corrections During the Month - Estimated metered quantities, or actual metered
quantities where available, may be used by Company for purposes of adjustments under
this Section on a daily basis during the month to determine the estimated Operational
Imbalance at all of the Delivery Point(s). Company shall make the estimated Daily
Variances and Monthly Operational Imbalances at each Delivery Point available to
Balancing Party by the third Business Day after each production day. Company or
Balancing Party may make adjustments in nominations and actual deliveries upon
24 hours notice by making imbalance make up nominations pursuant to this Agreement
and in accordance with the applicable provisions of Company's Tariff. Any such
adjustments will offset pre-existing imbalances accrued during the month.
3.3 Corrections in Subsequent Periods - As soon as practicable following the close of
each month, Company will send Balancing Party a statement setting forth the accrued
Daily Variances and the Monthly Operational Imbalance existing at the end of the
prior month. Any Monthly Operational Imbalance shall be corrected in cash in
accordance with Rate Schedule LMS-MA of Company's Tariff unless the Parties mutually
3.4 Measurement of Operational Imbalance - Any gas received or delivered pursuant to this
Agreement to correct an Operational Imbalance shall be adjusted for variation in Btu
content. Measurement of gas for all purposes shall be in accordance with Company's
FERC Gas Tariff.
3.5 Operational Integrity - Nothing in this Article 3 shall limit Company's right to take
action as may be required to adjust deliveries 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 year and shall continue thereafter on a month-to-month basis unless canceled
by either Party upon thirty days' prior written notice with the termination to be
effective at the end of a calendar month. Notwithstanding the above, if any material
problem arises 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.
4.2 Continuing Obligations - Following the termination of this Agreement, any remaining
Operational Imbalance shall be resolved in cash in accordance with Rate
Schedule LMS-MA of Company's FERC Gas Tariff Volume No. 1, unless the Parties
mutually agree otherwise.
4.3 This Agreement will terminate automatically in the event that Balancing Party fails
to pay the entire amount of any bill for service rendered by Company hereunder in
accordance with the General Terms and Conditions of Company's Tariff.