Portland Natural Gas Transmission System

Second Revised Volume No. 1

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Effective Date: 09/01/2006, Docket: RP06-449-000, Status: Effective

Original Sheet No. 335 Original Sheet No. 335 : Effective

 

GENERAL TERMS AND CONDITIONS (Continued)

 

(b) Daily Balancing. If on any Day the quantities of Gas Shipper

delivers to Transporter at the Receipt Point(s) ("Receipts") (adjusted by the

applicable Measurement Variance Quantity) are in excess of or deficient by the

greater of five percent (5%) or 400 DTH of the quantities of Gas taken by

Shipper at the Delivery Point(s), Transporter shall provide Shipper with

notification, within such period of time as reasonably required by Transporter

to protect the integrity of its System, to initiate corrective action. In the

event Shipper fails to initiate during the next available timely nomination

cycle the corrective action as advised by Transporter, Transporter may charge

Shipper $1.30 per DTH for any receipts which are in excess or deficient by the

greater of five percent (5%) or 400 DTH of deliveries. Shipper shall have 30

Days after notification to reduce the cumulative imbalance to zero.

 

(c) Monthly Balancing.

 

(1) At least seven (7) Days prior to the end of each Month

Transporter shall notify Shipper if it appears that Receipts (adjusted by the

applicable Measurement Variance Quantity) will be in excess of or deficient by

two percent (2%) or more of deliveries. Transporter may charge Shipper $1.30

per DTH for any Receipts (adjusted by the applicable Measurement Variance

Quantity) which are in excess of or deficient by two percent (2%) of

deliveries, if:

 

(A) within one (1) Business Day after Transporter's

notification, Shipper fails to come to an agreement with Transporter upon the

appropriate corrective action to be implemented;

 

(B) Shipper fails to implement the agreed-upon corrective

action; and/or

 

(C) such corrective action fails to reduce the cumulative

balance to zero within 30 days after Transporter's notification.

 

(2) Imbalances for any Month that become apparent after the time

for notice has expired shall be considered as an imbalance for the Month

following the Month in which the imbalance became apparent.

 

(3) In any Month in which Shipper may be liable for both Daily and

Monthly imbalance penalties, the sum of the excess and deficiency quantities

for which Shipper has been assessed a Daily imbalance penalty shall be