Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/01/1994, Docket: RP94-353-000, Status: Effective

Original Sheet No. 403B Original Sheet No. 403B : Effective

 

PRO FORMA

PIPELINE BALANCING AGREEMENT

(Continued)

 

NOW THEREFORE, the Parties agree that such Pipeline Imbalances at the

Interconnection Point shall be treated in the following manner:

 

ARTICLE I

 

NOMINATIONS AND CONFIRMATIONS

 

1.1 Confirmation of Nominations - Not later than 2:00 p.m. Birmingham, Alabama time

on the business day prior to the beginning of the month in which service is to

commence, Southern and Pipeline Operator shall confirm the quantities nominated

to be received and delivered by the Parties at the Interconnection Point commencing

on the first day of the month following the confirmation. Any modification or

adjustment to such scheduled quantities must be confirmed by Southern and Pipeline

Operator prior to the commencement of the revised service. Neither Party shall be

obligated to revise the scheduled quantities in effect unless the other Party notifies

it by 4:00 p.m. Birmingham, Alabama time on the day prior to the day the change

in physical deliveries is to be made, unless the Parties mutually agree otherwise.

Southern shall provide evidence of such scheduled quantities (in writing or by

electronic means) by the day following such confirmation, unless mutually agreed to

otherwise. If at any time during a month Pipeline Operator fails to respond to

Southern's request to confirm the quantities to be received or delivered at the

Interconnection Point, then Southern may, at its option, terminate this Agreement

at the end of the current calendar month upon prior written notice to Pipeline

Operator. If at any time during a month Southern fails to respond to Pipeline

Operator's request to confirm the quantities to be delivered or received at the

Interconnection Point, then Pipeline Operator may, at its option, terminate this

Agreement at the end of the current calendar month upon prior written notice to

Southern. The Parties also agree that the provisions of this Agreement apply to any

scheduled deliveries or receipts by displacement at the Interconnection Point.

 

1.2 Allocations Based on Scheduled Nominations - The Parties intend that the volumes

of natural gas actually delivered or received at the Interconnection Point will be

equal to the confirmed nominations scheduled to be delivered