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. 439 Original Sheet No. 439

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

37. CASH OUT PROVISIONS (Continued)

 

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

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

an OIA is "Due To" 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 "Buy" 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

From" Buyer imbalance in that zone then, multiplying the lowest 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

"Buy" price which shall be the lowest 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 "Buy"

price which shall be the lowest weekly Reference Spot Price multiplied

by a factor of 80%; 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

"Buy" price which shall be the lowest weekly Reference Spot Price

multiplied by a factor of 70%; then

 

(v) Imbalance quantities which are greater than a 15% imbalance but less

than or equal to a 20% imbalance shall be multiplied by the applicable

"Buy" price which shall be the lowest weekly Reference Spot Price

multiplied by a factor of 60%; then

 

(vi) Imbalance quantities which are greater than a 20% imbalance shall be

multiplied by the applicable "Buy" price which shall be the lowest

weekly Reference Spot Price multiplied by a factor of 50%.