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