Sg Resources Mississippi, L.L.C

Original Volume No. 1

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Effective Date: 03/01/2008, Docket: RP08-184-000, Status: Effective

Original Sheet No. 242 Original Sheet No. 242 : Pending

 

 

FORM OF OPERATIONAL BALANCING AGREEMENT

(continued)

 

2. The Parties intend that the quantity of gas actually

delivered and received each Day at the Location will equal the

Scheduled Quantities for the Location. Each Party will allocate

quantities which have been delivered and received at the Location

among the Service Requester Agreements on its system pursuant to

the Scheduled Quantities at such locations. Any imbalance created

when the actual physical flow is different from the Scheduled

Quantities will be the "Operational Imbalance," which will be the

responsibility of the Parties to eliminate pursuant to this

Agreement. The Daily Operational Imbalance on any Day shall not

exceed 10% of the Scheduled Quantities for such Day, and shall not

exceed a cumulative volume of _______ Dth, unless otherwise

mutually agreed to by both Parties. The terms "Day" and "Daily,"

as used in this Agreement, refer to a "Gas Day" as defined by the

Wholesale Gas Quadrant of the North American Energy Standards

Board ("NAESB"). When used to refer to gas flows, the term

"month" shall refer to the period of time beginning at the start

of the Gas Day that starts on the first day of a calendar month

and ending at the start of the Gas Day that starts on the first

day of the next calendar month.

 

3. Estimated operating quantities flowing at the Location

shall be used on a Daily basis during any current Day to determine

the estimated Operational Imbalance at the Location, with physical

flow adjustments to be made during that current Day as mutually

agreed to by both Parties to attempt to maintain or achieve an

Operational Imbalance of zero at the Location; provided, however,

the Parties agree that Scheduled Quantities will be received and

delivered at as nearly as possible to a uniform hourly rate of

flow or other hourly rate mutually agreeable by the Parties.

Neither Party shall have any obligation to alter its pipeline

pressures, provide compression, or modify its pipeline operations

to eliminate any Operational Imbalance. Either Party, in its sole

discretion, may adjust nominations at the Location in the event of

non-performance by the other Party.

 

4. (a) The actual measured quantity of gas at the Location

each month shall be determined and communicated by the measuring

party ("Measuring Party"), which shall be _________, by facsimile,

electronic interface system or in writing to the other Party in

accordance with NAESB Standard 2.3.7. The actual measured

quantity shall be determined pursuant to the applicable provisions

of the Measuring Party's Tariff or applicable measurement

procedures.

 

(b) For the previous month's activity, within

three (3) business days following the end of such month, the

Parties shall reconcile and confirm in writing the scheduled

volumes for Service Requesters for whom the Parties delivered or

received gas at the Location. Any changes to such confirmed

nominations shall be effective only if agreed to in writing by

both Parties.