Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 2600 Original Sheet No. 2600 GENERAL TERMS AND CONDITIONS Section 1414. Imbalance Resolution Procedures (a) Texas Gas will provide by electronic or other available means of communication, its best available operating data on gas receipts and deliveries to Customer on a daily basis within 24 hours of the end of the gas day. Daily operational information shall include information on daily gas flow provided by Electronic Flow Measurement (EFM), telemetry, or any other means Texas Gas would use to provide Customers with its best estimate of daily gas receipts and deliveries for that Customer's account. Such daily operating data provided Customer as to gas receipts and deliveries shall be allocated pursuant to the PDAs in effect. Customer's imbalance percentage will be determined from actual data; however, Customer may utilize Texas Gas' operating data for purposes of correcting imbalances, if any, during the month. (b) All imbalances accrued by Customer under its transportation agreements shall be resolved on a monthly basis pursuant to the provisions herein and subject to the provisions of Section 15 of these General Terms and Conditions. At the end of each month, Texas Gas will calculate the imbalance under all Customer's transportation agreements. The monthly imbalance will be determined by comparing actual receipts, less fuel, to actual deliveries for each agreement. If actual data shows Customer is subject to cash-out, Texas Gas shall review the operating data provided Customer prior to any cash-out. If Customer's cash-out percentage using operating data is less than that using actual data, then Texas Gas shall cash-out Customer's actual imbalance by using operating data to determine the applicable cash-out percentage. A Customer nominating gas receipts from a paper Pooling Point will be allocated gas receipts equal to confirmed nominations, with the Pooling Supplier being responsible for the differences between actual gas receipts and nominations at the individual receipt points into Texas Gas' system. (c) All monthly imbalances accrued by Customer under Customer's various transportation agreements will be combined to determine the actual net imbalance for Customer for purposes of the following calculation. The actual net imbalance then will be divided by the sum of the total gas quantities delivered under all such transportation agreements for Customer during the month (excluding pool to pool transfers under Rate Schedule TAPS) to yield Customer's net imbalance percentage for the month. (d) If Customer has accrued a net monthly imbalance such that the total quantities of gas received by Texas Gas for Customer's account during the month are less than the total quantities of gas delivered by Texas Gas for Customer's account during the month, then Customer shall make up in-kind any imbalance equal to or below a net imbalance percentage of two percent and may elect to make up in-kind net imbalances from two to five percent pursuant to Sections 14 (I) and (j) below. Customer shall pay Texas Gas for the remainder, if any, of Customer's net monthly imbalance (in MMBtu) in excess of that to be made up in-kind according to the following table: Net Imbalance Percentage of Percentage Applicable Index Price >2% to 5% 100% x highest weekly average price >5% to 10% 110% x highest weekly average price >10% to 15% 120% x highest weekly average price >15% to 20% 130% x highest weekly average price >20% to 25% 140% x highest weekly average price > 25% 150% x highest weekly average price Customer shall pay Texas Gas for their net monthly imbalance calculated herein in accordance with Section 15 of the General Terms and Conditions of this Tariff.