Viking Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 07/01/2004, Docket: RP04-306-000, Status: Effective

Second Revised Sheet No. 122 Second Revised Sheet No. 122 : Effective

Superseding: First Revised Sheet No. 122

 

OPERATIONAL BALANCING AGREEMENT

(For Use at Receipt Point(s))

 

 

ARTICLE III

TERM

 

3.1 Duration of Agreement - Subject to the other termination rights provided herein,

this Agreement shall be in full force and effect from the date hereof for a primary

term of _____ and shall continue thereafter on a month-to-month basis unless

terminated by either Party giving thirty (30) days, written notice, with the

termination to be effective at the end of a calendar month. Notwithstanding the

above, if any material problems arise as a result of the provisions of this

Agreement, then the Parties will enter into good faith negotiations to amend this

Agreement to resolve such problems. If the Parties are unable to resolve such

problems as a result of such negotiations, then either Party may terminate this

Agreement upon forty-eight (48) hours' prior written notice with the termination to

be effective at the end of a calendar month.

 

3.2 Continuing Obligations - Following the termination of this Agreement, any remaining

Operational Imbalance shall be corrected in cash in accordance with Section 3 of the

General Terms and Conditions of Company's FERC Gas Tariff unless the Parties

mutually agree otherwise.

 

ARTICLE IV

MISCELLANEOUS

 

4.1 Warranties - Balancing Party warrants (i) that as to any gas which it delivers or

causes to be delivered to Company hereunder to correct an Operational Imbalance that

it will have good title to such gas, free and clear of all liens, encumbrances and

claims whatsoever; (ii) that it will at the time of delivery have the right to

deliver or cause to be delivered such gas; (iii) that it has the right to allocate

all (of its) deliveries from the Receipt Points in accordance with this Agreement;

and (iv) that it will indemnify and save Company harmless from suits, actions,

debts, accounts, damages, costs, losses and expenses arising from or out of adverse

claims of any or all persons to said gas or to royalties, overriding royalties,

taxes, or other charges thereon or with regard to the allocation of gas hereunder.

Balancing Party represents and warrants to Company that all requisite

authorizations, if any, have been obtained as to any gas which Balancing Party

delivers or causes to be delivered hereunder. The Balancing Party of each Receipt

Point will take the necessary corrective action requested by Company in accordance

with this Agreement and shall perform all acts and duties required to nominate,

confirm and deliver gas hereunder. If the Balancing Party fails to take such

corrective action, then this Agreement shall terminate upon written notice from

Company at the end of that calendar month (then such Receipt Point(s) will be

deleted from Exhibit A upon written notice from Company at the end of the calendar

month and shall no longer be subject to this Agreement). Company may act, and shall

be fully protected in acting, in reliance upon any and all acts performed by

Balancing Party to nominate, confirm and deliver gas hereunder.