North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 08/12/2002, Docket: RP02-363-000, Status: Effective

Original Sheet No. 150 Original Sheet No. 150 : Effective

 

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

16. BALANCING

 

16.1 To the extent possible, imbalance information shall be based upon

actual, real-time data. Balancing of thermally equivalent

quantities of gas received and delivered by NBP shall be achieved

as nearly as feasible on a daily basis. Correction of imbalances

shall be the responsibility of the Shipper whether or not notified

by NBP at the time of incurrence of the imbalance. Correction of

imbalances shall be scheduled with NBP using the nomination

process as soon as an imbalance is known to exist based on the

best available current data. Nominations to correct imbalances

shall have the lowest priority for scheduling purposes and shall

be subject to the availability of capacity and other operational

constraints for imbalance correction. If on any day capacity is

insufficient to schedule all imbalance nominations, all such

nominations shall be prorated accordingly. To maintain the

operational integrity of its system, NBP shall have the right to

balance any Shipper's account as conditions may warrant.

Imbalances shall exist as defined below and be subject to the

applicable charges and penalties if not corrected.

 

(a) Actual delivered quantity exceeds MDQ

 

Quantities in excess of Shipper's MDQ shall be transported,

without penalty, when capacity is available on the NBP

system and when the provision of such Authorized Overruns

shall not affect any Shipper's rights on the NBP system.

Authorized Overruns are interruptible in nature. The rate

charged for Authorized Overruns shall be the same as the

rates and charges for Interruptible Transportation under

Rate Schedule ITS-1 as set forth on effective Tariff Sheet

No. 4, and such Authorized Overruns shall be subject to the

priority of service provisions of Paragraph 13 of the

General Terms and Conditions of Service.

 

To the extent NBP has facilities in place, NBP may utilize

flow control to limit shipper deliveries to contractual MDQ

levels when Shipper has not requested Authorized Overrun

Service.

 

 

(Continued)