Wyckoff Gas Storage Company, LLC

Original Volume No. 1

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Effective Date: 12/31/9999, Docket: RP09- 444-000, Status: Accepted

Original Sheet No. 20 Original Sheet No. 20

 

treated as either a positive or a negative imbalance, as

appropriate, in Transporter’s Gas Storage Inventory Account at the

Facility and the Gas Storage Inventory Account of Shipper under the

Service Agreement shall be unaffected by any such occurrences.

Transporter agrees that, notwithstanding the occurrence of such

Transporter-Caused Imbalances, (a) Shipper will at all times be

entitled to all applicable services specified under the Service

Agreement, subject however, to the pressure requirements and such other

terms and conditions hereof as may be applicable; (b) Transporter

shall, as soon as practicable after the occurrence of any such

Transporter-Caused Imbalance, cause the imbalance to be remedied by

either injecting Gas into the Facility or withdrawing Gas from the

Facility, such that any Transporter Pipeline Imbalance is remedied and

the relative Gas Storage Inventory Accounts of Shipper and Transporter

at the Facility are brought back into balance; and (c) Transporter

shall indemnify and hold Shipper harmless from and against all costs

and penalties that may be assessed by any third person (whether a

Pipeline or other person) and any other losses that may ensue as a

result of the occurrence of any such Transporter-Caused Imbalances.

 

5.2 Shipper-Caused Imbalances. The Parties recognize and

acknowledge that if, from time to time, Shipper fails to deliver Gas to

Transporter or to accept delivery of Gas from Transporter in accordance

with Shipper’s nominations made pursuant to the scheduling procedures

(“Shipper Receipt/Delivery Failure”), then Shipper or Transporter may

incur an imbalance on one or more pipelines (“Shipper Pipeline

Imbalance”). Both Transporter and Shipper recognize and agree that, if

as a result of a Shipper Receipt/Delivery Failure, either (i) a Shipper

Pipeline Imbalance occurs and as a result thereof, any Pipeline

assesses an imbalance penalty, fee or other charge; or (ii) a Storage

Operational Imbalance occurs and as a result thereof, Transporter

suffers or incurs any penalties, charges or other costs assessed by any

person (whether a Pipeline, another customer of Transporter, or any

other person), or Transporter incurs any other losses or liabilities,

then Shipper shall indemnify and hold Transporter harmless from and

against all such penalties, charges, costs, liabilities and other

losses as the result of the occurrence of any such Shipper

Receipt/Delivery Failure.

 

SECTION 6. GAS PRESSURE, QUALITY AND MEASUREMENT

 

6.1 Gas Pressure. Transporter shall redeliver Gas to Shipper

at pressures sufficient to enter the Third Party Transporter’s

facilities at the Point(s) of Redelivery against the operating

pressures maintained by such Third Party Transporter(s). Transporter

shall not be required to redeliver Gas at pressures in excess of or

below those required by Third Party Transporter(s) or in excess of

Third Party Transporter(s) maximum allowable operating pressure (MAOP).

Shipper shall deliver or cause to be delivered to Transporter all Gas

at the Point(s) of Delivery at such pressures as may exist from time to

time in the Third Party Transporter’s system.

 

6.2 Quality. Gas delivered by or on behalf of the Shipper

to the Transporter shall conform to the Third Party Transporter’s gas

quality standards. In the event that Gas scheduled for delivery by

Shipper fails to meet such quality specifications, Transporter shall

have the right to refuse to accept delivery of such Gas for so long as

such condition exists. Gas redelivered by Transporter shall conform to

the Third Party Transporter’s quality standards; provided, however,

that if the Gas tendered for delivery to Shipper by Transporter is

substantially the same quality in all material respects as the quality

of Gas that Shipper delivered to Transporter, then it shall be deemed

to have complied in all respects with its delivery obligations to

Shipper hereunder.

 

6.3 Measurement. All Gas delivered by or to Shipper will be

measured by the