Viking Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 02/01/2010, Docket: RP10-204-000, Status: Effective

Ninth Revised Sheet No. 51 Ninth Revised Sheet No. 51

Superseding: Eighth Revised Sheet No. 51

 

GENERAL TERMS AND CONDITIONS

 

 

3. MEASUREMENT AND SCHEDULING OF RECEIPTS AND DELIVERIES (Continued)

 

3.7. Supply Deficiencies

 

If Company experiences a supply short fall due to the under delivery of

supplies to Company's mainline, then (a) if the deficient source is known,

Company will curtail the corresponding firm or interruptible transportation

market; or (b) if the deficient sources are undeterminable, then Company will

localize the smallest affected area and, at the corresponding delivery point,

will curtail interruptible service first and then firm services in accordance

with Subsection 3.6 of the General Terms and Conditions; provided that

verifiable receipt point quantities will not be subject to a supply short fall

curtailment.

 

3.8. Shipper Imbalances

 

3.8.1 Shipper Duty to Control Imbalances

 

A Shipper receiving any transportation service from Company will use,

or will cause any party receiving or delivering Shipper's gas to use,

all reasonable efforts to ensure that receipts and deliveries of gas

are equal to the nominations confirmed by Company. Shipper shall also

be responsible to control, and if necessary, adjust receipts and

deliveries of gas to maintain a balance between such receipts,

deliveries and confirmed nominations. To the extent a Shipper is out

of balance it will be subject to the daily and monthly balancing

provisions contained in Rate Schedule LMS of Company's FERC Gas Tariff.

No imbalance penalty should be imposed when a prior period adjustment

applied to the current period causes or increases a current month

penalty.

 

3.8.2 Unauthorized Delivery Imbalance Charge

 

Unauthorized deliveries are deliveries of transportation gas made to

Company at the receipt point(s) prior to execution of a Transportation

Agreement or submission of a nomination by the Shipper provided in

Subsection 3.4 of these General Terms and Conditions. For any

unauthorized deliveries, Company shall assess a charge equal to two

times the Index Price as determined in accordance with the procedures

established in Subsection 5(b) of Rate Schedule LMS. Company shall

have the right to retain unauthorized deliveries at receipt point(s)

which have not been cured in accordance with above after 30 days notice

to the responsible party.

 

3.8.3 Balancing at Agreement Termination

 

Following the termination of the Transportation Agreement, Shipper

shall be required to correct any remaining imbalance in receipts and

deliveries in cash in accordance with the procedures established in

Section 5 of Rate Schedule LMS, unless the parties mutually agree

otherwise.