Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 04/11/2009, Docket: RP09-448-002, Status: Effective

First Revised Sheet No. 5500 First Revised Sheet No. 5500

Superseding: Original Sheet No. 5500

 

FORM OF OPERATIONAL BALANCING AGREEMENT

 

 

WHEREAS, Texas Gas Transmission, LLC's (Texas Gas) pipeline facilities and

_____________________'s facilities directly interconnect at the "Interconnection Point(s)"

specified on Exhibit 1 attached hereto;

 

WHEREAS, Texas Gas has entered into one or more transportation agreements whereby Texas

Gas either receives gas which its transportation customers cause to be delivered at the

Interconnection Point(s), or delivers gas which its transportation customers cause to be

received at the Interconnection Point(s);

 

WHEREAS, from time to time, gas quantities at the Interconnection Point(s) are either

greater than or lesser than the confirmed quantities nominated by transportation customers and

have resulted in inadvertent over- or under-deliveries relative to nominated quantities.

 

NOW THEREFORE, Texas Gas and _____________________ ("The Parties") agree that such

over- or under-deliveries at each Interconnection Point be treated in the following manner:

 

(1) Prior to the first day of each month, the Parties shall reconcile and confirm in

writing the nominations received by each transportation customer and how these gas quantities

are to be allocated each day of the month among those transportation customers for whom the

Parties are delivering or receiving the gas. Any changes to such confirmed nominations shall be

effective only if agreed to in writing by both Parties. Such written communication shall be

substantially in the form set out on the attached Exhibit 2 or in any other form mutually

agreeable to the Parties. By the fifth (5) business day of the month, (Operator) shall furnish

(the Other Party) with a signed summary of the agreed-upon allocations for transportation

customers for the previous month. (The Other party) shall sign and return a copy of such

monthly allocation summary evidencing (the Other Party's) concurrence. Such written daily and

monthly communication shall be substantially in the form set out on the attached Exhibit 2.

 

(2) The Parties intend that the gas quantities actually delivered and received each day at

the Interconnection Point(s) will equal the confirmed nominations received and agree to make all

reasonable efforts on a daily basis to maintain the actual quantity flowing through the

Interconnection Point(s) at a level equal to the confirmed nominations. Daily variances in

actual gas flow from the nominated quantity shall not exceed five percent (5%) of the daily

nominated transportation quantities with the total monthly variance from the nominated quantity

not to exceed two percent (2%) of the total gas quantity nominated to flow for that month. If

the imbalance under this Agreement exceeds the variances set forth in this paragraph, either

party shall have the unilateral right to adjust the actual flow of gas at the Interconnection

Point(s) or adjust nominations received and confirmed at this point in order to correct for any

differences.

 

(3) Each Party will allocate gas quantities which are to be delivered and received at the

Interconnection Point(s) among the Party's respective transportation customers pursuant to the

confirmed nominations. Any imbalance created when the actual physical flow is different than

the confirmed nominations will be the "Operational Imbalance," which will be cleared pursuant to

Section 13.2 of the General Terms and Conditions in Texas Gas' FERC Gas Tariff.