Trunkline LNG Company, LLC

Second Revised Volume No. 1-A

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Effective Date: 08/01/2003, Docket: RP03-535-000, Status: Effective

Original Sheet No. 73 Original Sheet No. 73 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

3. NOMINATION AND SCHEDULING OF SERVICES (Continued)

 

3.8 Predetermined Allocations

 

(A) For all Regasified LNG to be delivered to Shipper,

Shipper shall cause the operating party of facilities

immediately downstream of TLNG's Point of Delivery to

provide a predetermined allocation methodology to be

used in allocating said Gas through the Point of

Delivery. Parties may agree upon one of the

following allocation methodologies: ranked, pro

rata, percentage, swing and operator provided value.

In the event the parties cannot agree on an

allocation methodology, pro rata based on confirmed

nominations will be used as the default method. The

party responsible for custody transfer (the party

performing the measurement function) must provide the

allocation. TLNG will accept such allocation if

operationally and administratively feasible.

 

(B) The allocation methodology shall be provided to TLNG

in writing before the start of the Gas Day that Gas

is to be delivered and shall prescribe the

methodology for all Service Agreements for which

Quantities have been scheduled at the Point of

Delivery.

 

(C) In the event no methodology acceptable to TLNG is

provided, TLNG shall allocate the actual Quantities

delivered by TLNG among Shippers based on the ratio

of each scheduled Quantity to the total scheduled

Quantities of Gas at the Point of Delivery applied to

the total Quantity of Regasified LNG actually

delivered by TLNG.

 

(D) Changes to the daily allocation methodology must be

submitted in writing and confirmed in advance of the

effective date and shall be effective prospectively.

No retroactive reallocation of any transaction shall

be permitted.

 

(E) TLNG shall not have any liability to any Shipper as a

result of TLNG's reliance on any allocation

methodology described herein, and Shipper shall

indemnify TLNG from and against any and all losses,

damages, expenses, claims, suits, actions and

proceedings whatsoever threatened, incurred or

initiated as a result of TLNG's reliance on such

allocation methodology, except to the extent such

loss, damage, expense, claim, suit, action or

proceeding is the result of TLNG's negligence, bad

faith or willful misconduct.