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. 433 First Revised Sheet No. 433 : Effective

Superseding: Original Sheet No. 433

 

MIDWESTERN GAS TRANSMISSION COMPANY

OPERATIONAL BALANCING AGREEMENT

(For Aggregator at Delivery Points)

 

 

ARTICLE 3 - CORRECTION OF OPERATIONAL IMBALANCES

 

3.1 Corrections in Flow Rates During A Day - Balancing Party will be able to request

adjustments to actual deliveries at its Delivery Points at any time during the

production day by coordinating with Company's gas dispatchers. Company will use

reasonable efforts to deliver those changed quantities when the operating conditions

on Company's system permits, taking into consideration the nominations made by firm

Shippers on Company's system.

 

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 Production Month to determine the estimated

Operational Imbalance at all of the Delivery Point(s). Company shall make the

estimated Daily Variances and Monthly Operational Imbalance at each Delivery Point

available to Balancing Party on or before 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 practical 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 resolved in cash in accordance

with Rate Schedule LMS-MA, unless the Parties mutually agree otherwise.

 

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 from __________________, 20___, for a primary term

of one month 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

problems arise as a result of the provisions of this Agreement, then the Parties will

enter 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.

 

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, unless the Parties mutually agree

otherwise.