Mojave Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

Third Revised Sheet No. 243 Third Revised Sheet No. 243

Superseding: Second Revised Sheet No. 243

 

General Terms and Conditions

(Continued)

 

10. Imbalance Management (Continued)

 

10.3 Similar Imbalance Management Services: Transporter will provide

its Shippers the opportunity to obtain similar imbalance management

services from other providers and shall provide those Shippers

using other providers access to transportation and other pipeline

services without undue discrimination or preference.

 

10.4 Imbalance Resolution Upon Termination: Upon termination of a

Service Agreement, any imbalance shall be eliminated through the

procedures set forth in this section.

 

(a) Within three-months after the Service Agreement terminated,

Shipper may resolve any terminated Service Agreement imbalance

associated with a terminated Service Agreement through the

methods described above.

 

(b) Any imbalance remaining three months after the Service

Agreement terminated will be cashed out to eliminate the

imbalance in accordance with Section 10.7.

 

(c) The cash-out of terminated Service Agreement imbalances will

not be required if a resolution to the imbalance is mutually

agreed to in writing prior to the end of the three-month

period of the month following the Service Agreement

termination date. Any such written imbalance resolution will

be agreed to on a not unduly discriminatory basis and posted

on Transporter's EBB.

 

10.5 Inactive Service Agreement Imbalances: An inactive Service

Agreement is defined as any Service Agreement with an imbalance

that has remained unchanged for a consecutive three month period.

Any such Inactive Service Agreement imbalance quantity will be

cashed out in accordance with Section 10.6. Transporter will

provide notice to the Inactive Service Agreement Shipper 30 days

prior to the pending cash-out.

 

10.6 Cash-Out: The term "cash-out" shall refer to the valuation of an

imbalance at a price pursuant to this section. Application of the

cash-out process will result in a monetary value due to the Shipper

or Transporter which upon payment, will result in reduction of the

imbalance to zero.

 

Shippers shall have the opportunity to reduce the Service Agreement

imbalance pursuant to the imbalance trading procedures above. Such

reductions, if any, shall determine a final Service Agreement

imbalance.