Midwestern Gas Transmission Company

SECOND REVISED VOLUME NO. 1

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Effective Date: 05/01/2001, Docket: RP01-338-000, Status: Effective

Seventh Revised Sheet No. 61 Seventh Revised Sheet No. 61 : Effective

Superseding: Sixth Revised Sheet No. 61

 

GENERAL TERMS AND CONDITIONS

 

(b) Allocation of Deliveries - Unless prohibited by applicable law or

regulation, the quantities delivered by Transporter at any delivery point

shall be allocated among Parties in accordance with any allocation

procedures specifically agreed to by Transporter and the delivery

point(s), as set forth in the Balancing Agreement governing the point

provided, however, Transporter will not be required to enter into

arrangements (a) with a party if that party does not meet Transporter's

creditworthiness provisions set forth in Article XXV of the General Terms

and Conditions or (b) with a market aggregator if the aggregator does not

demonstrate that it has the physical or contractual ability to control

the flow of gas at the applicable delivery point(s) and the contractual

right to allocate gas deliveries at such point(s).

 

(c) Absence of Balancing Agreement - In the absence of a methodology as

described above due to the absence of a Balancing Agreement or for other

reasons, the operator, the Up/Down Party(ies) ("UDP"), and/or the Shipper

at the receipt and/or delivery point, as applicable, shall advise

Transporter, prior to the commencement of the day, of a Predetermined

Allocation Methodology ("PDA") to be utilized in allocating scheduled

receipts or deliveries among all parties and scheduling services at such

points; provided that such methodology must allocate flows based on

scheduled quantities. Transporter shall confirm receipt of the PDA within

15 minutes. Confirmation of receipt of PDAs transmitted via EDI shall be

Transporter's PDA quick response via EDI. Confirmation of receipt of PDAs

transmitted via facsimile shall be the sending party's facsimile

transmission report. In the absence of receipt of a PDA, Transporter

shall allocate quantities received or delivered at a certain point in

proportion to the Scheduled Quantities.

 

(d) Notification of Allocation Rules - Upon receipt of a request from a Party,

Transporter will notify Party of the applicable rules governing the

allocation of Party's gas at Party's Receipt and Delivery Points.

 

(e) Correction of Allocations - GISB Standard 2.3.26 (Version 1.4) states:

The time limitation for disputes of allocations should be 6 months from

the date of the initial month-end allocation with a 3-month rebuttal

period. This standard shall not apply in the case of deliberate omission

or misrepresentation or mutual mistake of fact. Parties' other statutory

or contractual rights shall not otherwise be diminished by this standard.

 

(f) GISB Standard 2.3.19 (Version 1.4) states: The transportation service

providers should accept GISB-approved allocation methodology types from

the upstream or downstream custody transfer party who is providing the

point confirmation.

 

4. Scheduling and Allocation

 

All Shippers and Balancing Parties are responsible for purchasing and maintaining

the equipment reasonably necessary to communicate with PASSKEY and for using

PASSKEY for all transactions relating to transportation services.

 

(a) GISB Standard 1.3.2 (Version 1.4) states: The standard nominations

timeline should be as follows: 11:30 A.M. for nominations leaving control

of the nominating party; 11:45 A.M. for receipt of nominations by the

transporter; noon for quick response; 3:30 P.M. for receipt of completed

confirmations by transporter from upstream and downstream connected

parties; 4:30 P.M. for receipt of scheduled quantities by shipper and

point operator (central clock time on the day prior to flow).

 

Initial Service: Upon execution of a service agreement, Shipper shall

send its nomination(s) to Transporter through PASSKEY with the information

specified by the Customer Nomination Form, as set forth in this