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. 154 Substitute Original Sheet No. 154 : Effective

 

 

BALANCING AGREEMENT

(For Use by Aggregator 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 by Transporter to the Delivery Point(s) commencing on the first day of

the month following the 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 to otherwise.

Balancing Party shall notify Transporter of any errors in the Scheduled Quantities

within two business days of receipt of such information from Transporter. If

Balancing Party fails to confirm the quantities to be transported and/or purchased

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 Point(s) 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 Operational Imbalances will be resolved in

accordance with Article III.

 

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

the Daily Limit applicable to a Delivery Point, Balancing Party shall be subject

to an unauthorized overrun charge of fifteen ($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 Transporter's General

Terms and Conditions.