Paiute Pipeline Company
Second Revised Volume No. 1-A
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Effective Date: 12/07/2003, Docket: RP04- 51-000, Status: Effective
Sixth Revised Sheet No. 89 Sixth Revised Sheet No. 89 : Effective
Superseding: Fifth Revised Sheet No. 89
GENERAL TERMS AND CONDITIONS
5. OVERRUN AND UNDERRUN, BALANCING AND PENALTY PAYMENTS (Continued)
5.3 Balancing: (Continued)
(e) Paiute shall waive any penalty payments that may otherwise be
due pursuant to this Section 5.3 for any imbalance caused by
an event of force majeure, as defined in Section 6.1 of the
General Terms and Conditions of this tariff, occurring on
Paiute's system, occurring on Shipper's system, or occurring
on the transmission or gathering system of a third party, and
which interferes with the receipt or delivery by Paiute of
Shipper's gas. In addition, Paiute will waive any such penal-
ty payments otherwise due from interruptible shippers and
capacity release Replacement Shippers whose scheduled gas is
bumped during a non-critical period, for the day of the bump.
(f) Shipper Imbalance Netting: A Shipper may net its imbalances
between its service agreements, provided that Paiute will be
reimbursed for any difference in transportation revenues
that may result from such netting. Where a netting trans-
action results in an overpayment of transportation revenues
to Paiute, Paiute will credit or refund the amount of the
overpayment to the Shipper.
(g) Shipper Imbalance Trading: A Shipper may trade imbalances
with another Shipper, provided that the Shipper with an
imbalance resulting from deliveries by Paiute in excess of
scheduled receipts from Shipper will reimburse Paiute for
any difference in transportation revenues that may result
from such trading. Where an imbalance trading transaction
results in an overpayment of transportation revenues to
Paiute, Paiute will credit or refund the amount of the over-
payment to the Shipper who made the overpayment. Any trading
of Shipper imbalances must result in each Shipper's imbalance
decreasing, but not beyond a zero imbalance level.
(1) All imbalance trading will be conducted through
Paiute's Electronic Bulletin Board or Internet Web
Site. If a Shipper desires to trade an imbalance, such
Shipper must consent to Paiute's release of necessary
information regarding the imbalance.
(2) Shippers that trade imbalances are responsible for
making whatever arrangements they deem necessary to
finalize and document the imbalance trade between them.
(3) Paiute will not be responsible for eliminating any
imbalances between Shipper and any third party.
Furthermore, Paiute will not be obligated to adjust or
deviate from its standard operating and accounting
procedures in order to alleviate any such imbalances.