Midwestern Gas Transmission Company

SECOND REVISED VOLUME NO. 1

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Effective Date: 09/01/1993, Docket: RS92- 41-004, Status: Effective

Substitute Original Sheet No. 147 Substitute Original Sheet No. 147 : Effective

 

 

BALANCING AGREEMENT

(For Use at Delivery Points)

 

 

ARTICLE II - NOMINATIONS AND CONFIRMATIONS

 

2.1 Confirmation of Nominations - Prior to the beginning of the month in which service

is to commence, Balancing Party shall confirm the quantities nominated to be

transported to the Delivery Point(s) commencing on the first day of the month

following confirmation. The quantities confirmed through this process shall

become the Scheduled Quantities. Any modification to such Scheduled Quantities

shall be reconfirmed by Balancing Party prior to the commencement of the revised

service. Transporter shall notify Balancing Party of any problems regarding the

scheduling of gas in accordance with confirmations hereunder within one business

day after such confirmation, unless mutually agreed otherwise. Balancing Party

shall notify Transporter of any errors in the Scheduled Quantities within one

business day of receipt of such information from Transporter. If Balancing Party

fails to confirm the quantities to be transported at any Delivery Point(s) in

accordance with the above, and such failure continues for two business days or

more (whether or not such days are consecutive) after 24 hours written notice to

the Balancing Party by Transporter for each occurrence of Balancing Party's

failure to confirm, then such affected Delivery Points shall be deleted from

Exhibit "A" upon written notice from Transporter at the end of that calendar

month.

 

2.2 Allocations Based on Scheduled Quantities - The Parties intend that the quantity

actually delivered at the Delivery Point(s) will equal the Scheduled Quantities.

Balancing Party shall use all reasonable efforts to ensure that the quantities

actually delivered at the Delivery Point(s) equal the Scheduled Quantities.

Unless prohibited by applicable law or regulation, all gas delivered by

Transporter shall be allocated each day based upon the Scheduled Quantities or by

such other methods as may be mutually agreed to by both Parties.

 

2.3 Allocation of Variances - The difference on any day between the Scheduled

Quantities and the actual quantity delivered at the Delivery Point(s) shall be the

Daily Variance and shall be allocated to this Agreement. The difference between

the sum of the Scheduled Quantities during a calendar month and the total actual

quantity delivered at the Delivery Point(s) during the calendar month shall be the

Monthly Operational Imbalance. Any Monthly Operational Imbalances will be

resolved in accordance with Article III.

 

2.4 Unauthorized Overruns - On any day that Balancing Party takes gas in excess of the

Daily Limit applicable to a Delivery Point controlled by Balancing Party,

Balancing Party shall be subject to an unauthorized overrun charge of fifteen

dollars ($15.00) for each dth of excess volumes taken beyond a 2% allowable

variation. The Daily Limit shall be posted in an Operational Flow Order issued

pursuant to Article VIII of the General Terms and Conditions of Transporter's

Tariff.