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. 475 Original Sheet No. 475

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

51. OPERATIONAL CONTROLS (Continued)

 

51.2 (b) Circumstances giving rise to an Imbalance Makeup Notice - Seller shall issue an

Imbalance Makeup Notice Due From Buyer or OBA Party or Imbalance Makeup Notice

Due To Buyer or OBA Party to prevent the impairment of normal levels of service

flexibility to Buyers under one or more of Seller's rate schedules, only if the

following conditions occur:

 

(i) Seller has experienced (1) a change in cumulative system imbalance of

more than 1.0 MMdt over a period of three days or less or (2) the

cumulative system imbalance exceeds 2.0 MMdt, or (3) physical storage

inventory levels in Seller's storage facilities and services in the

OIA(s) where the Imbalance Makeup Notice would apply are below 25% of

capacity or in excess of 80% of capacity; and,

 

(ii) Seller has taken one or more of the following steps in the affected

portion of the system.

 

(1) reducing the allowable Pool scheduling tolerance to less than 4%;

(2) reducing to zero any additional quantities of ISS or PAL service

available;

(3) reducing to zero the quantity of excess storage injection or

withdrawal available to Buyers of firm storage services; or

(4) reducing to zero the use of makeup transactions necessary for

imbalance management.

 

(c) Notice. Seller will post the IMN on 1Line (and make reasonable efforts to

provide notice by facsimile, e-mail and/or telephone, as requested by Buyer) to

all affected parties that an IMN will become effective for the following Gas

Day. The notice will be posted at least twenty-four (24) hours prior to the

start of the Gas Day for which the IMN will be effective. The notice shall

state the specific IMN tolerance percentage, and the Gas Day(s) within which the

cumulative monthly imbalance must be reduced. The affected party(s) must

appropriately schedule, in accordance with the timelines identified in Section

28 of the General Terms and Conditions, in response to the notice prior to the

start of the Gas Day on which the IMN will be in effect.

 

When Seller determines in its sole discretion that the operational flexibility

of the system is no longer jeopardized, the IMN will be rescinded and Seller

shall post notice on 1Line (and make reasonable efforts to provide notice by

facsimile, e-mail and/or telephone, as requested by Buyer).

 

(d) Imbalance Makeup Notice Tolerance Percentage. Seller shall determine, at its

sole discretion, the Imbalance Makeup Notice Tolerance Percentage it deems

appropriate to improve the particular operating situation. However, the

Imbalance Makeup Notice Tolerance Percentage for each affected Buyer shall not

be less than 5% of that affected Buyer's cumulative monthly imbalance, or 1,000

dt whichever is greater, existing at the time of the notice.

 

(e) Imbalance Makeup Notice Penalty. Each party to which an IMN is directed shall

pay a charge calculated by multiplying the quantity of gas outside of the

Tolerance Percentage by the highest weekly Reference Spot Price for the current

month (as set forth in Section 37.1(a) of the General Terms and Conditions)

applicable to the affected zone(s), for each day of that party's noncompliance

with the IMN beyond the time frame specified in the IMN. The Imbalance Makeup

Notice Penalty collected shall be distributed pursuant to Section 54 of the

General Terms and Conditions.

 

The Imbalance Makeup Notice Penalty shall not apply to the extent that a party's

noncompliance is caused by Seller's inability to physically accommodate an

imbalance makeup, or by events of force majeure.