Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective

Original Sheet No. 437 Original Sheet No. 437

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

37. CASH OUT PROVISIONS (Continued)

 

37.1 (a) (Continued)

 

(ii) For each month, the "Buy" and "Sell" Price for each zone within an OIA

shall be based upon the Reference Spot Prices established for that zone

within an OIA pursuant to Section 37.1(a)(i) above or alternate cash out

prices using different Reference Spot Prices and/or publications mutually

agreed upon by Seller and OBA Party as set forth in the OBA.

 

(b) A Buyer's imbalance percentage for each zone within an OIA shall be calculated by

dividing Buyer's imbalance remaining at the end of the trading period in each

zone within an OIA by Buyer's total deliveries under transactions nominated with

a receipt point in that zone within an OIA.

 

An OBA Party's imbalance percentage shall be calculated by dividing OBA Party's

imbalance remaining at the end of the trading period by the total scheduled

quantities at the point(s) covered by the OBA.

 

(c) At the end of the trading period, if a Buyer's imbalance in a zone within an OIA

is "Due From" Buyer and the aggregate imbalance for all Buyers in that zone

within an OIA is "Due From" Buyer, such Buyer shall be defined as a majority

shipper for that zone within an OIA. A majority shipper shall cash out the

imbalance for that zone within an OIA based on tiers beginning with (i) below and

progressing through each subsequent tier until the entire imbalance has been

cashed out. Each tiered imbalance quantity shall be calculated by multiplying

the percentage imbalance, as stated in (i) through (vi) below, times Buyer's

total deliveries. Any imbalance in that zone within an OIA that is equal to or

less than 1,000 dt shall be cashed out using the provisions set forth in (i)

below.

 

(i) Imbalance quantities which are equal to or less than a 2.5% imbalance

shall be multiplied by the applicable "Sell" price calculated as a

Weighted Average Spot Price for that zone. The Weighted Average Spot

Price shall be determined by multiplying the simple average of the

weekly Reference Spot Prices calculated pursuant to Section 37.1(a)(i)

by the cumulative imbalance quantity for all Buyers that have a "Due To"

Buyer imbalance in that zone then, multiplying the highest weekly

Reference Spot Price by the net imbalance quantity for all Buyers in

that zone and, dividing the sum of the dollars calculated in the first

two steps by the cumulative imbalance quantity for all majority shippers

in that zone; then

 

(ii) Imbalance quantities which are greater than a 2.5% imbalance but less

than or equal to a 5% imbalance shall be multiplied by the applicable

"Sell" price which shall be the highest weekly Reference Spot Price;

then

 

(iii) Imbalance quantities which are greater than a 5% imbalance but less than

or equal to a 10% imbalance shall be multiplied by the applicable "Sell"

price which shall be the highest weekly Reference Spot Price multiplied

by a factor of 120%; then

 

(iv) Imbalance quantities which are greater than a 10% imbalance but less

than or equal to a 15% imbalance shall be multiplied by the applicable

"Sell" price which shall be the highest weekly Reference Spot Price

multiplied by a factor of 130%; then