Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 03/22/2010, Docket: RP10-385-000, Status: Effective

Seventh Revised Sheet No. 299 Seventh Revised Sheet No. 299

Superseding: Sixth Revised Sheet No. 299

 

GENERAL TERMS AND CONDITIONS

 

 

34. OPERATIONAL BALANCING AGREEMENT POLICY (Continued)

 

34.1 Purpose (Continued)

 

Company considers an OBA to be a predetermined allocation

method.

 

34.2 Policy

 

It is Company's policy to negotiate and execute, if possible,

the Company's form of OBA at all Points of Interconnection.

However, if an OBA does not exist at a Point of

Interconnection, the imbalance charges, cash-outs, or

penalties incurred at such point shall be the responsibility

of Shipper(s) that are out of balance. Company shall enter

into an OBA at all pipeline-to-pipeline (interstate and

intrastate) interconnects. [2.3.29]

 

If it is not possible to utilize Company's form of OBA for an

interstate pipeline interconnection, an acceptable OBA for

such interconnection must include the following provisions:

 

a) The OBA must be in energy terms with stated bases.

 

b) The OBA parties intend that the quantity actually

received/delivered each day at the interconnection

will equal the scheduled nominations.

 

c) Any differences between the metered quantity and the

scheduled nomination is treated as an OBA imbalance

and exists solely between the OBA parties.

 

d) The OBA parties will take the necessary steps to

ensure that the cumulative daily OBA imbalance is

maintained at or tends towards a zero imbalance. No

imbalance penalty shall be imposed when a prior period

adjustment applied to the current period causes or

increases a current month penalty. [2.3.31]