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. 245 Original Sheet No. 245 : Pending

 

 

FORM OF OPERATIONAL BALANCING AGREEMENT

(continued)

 

6. In the event that a capacity constraint occurs on either

Party's system which results in curtailment or a scheduling

allocation of quantities through the Location, the Party on whose

system the constraint has occurred shall determine the

confirmation of quantities to the Service Requestor(s) under the

affected Service Requestor Agreements. Such change in Scheduled

Quantities shall be confirmed as required by Section 1 above. If

the constraint occurs at the Location, the operator of the

Location shall determine the confirmation of quantities to the

Service Requestor(s) under the affected Service Requestor

Agreements, unless otherwise mutually agreed.

 

7. This Agreement is entered into in order to facilitate

operations and accounting between the Parties, and shall have no

effect upon the Service Requester Agreements or upon the

effectiveness of either Party's FERC Gas Tariff.

 

8. Notwithstanding the termination of this Agreement, the

Parties agree to reconcile and eliminate any remaining Operational

Imbalance pursuant to the terms and conditions of this Agreement

within thirty (30) days of termination of this Agreement or such

other period of time, which is mutually agreed to by the Parties.

 

9. This Agreement and the terms and conditions herein are

subject to all present and future valid laws, orders, rules and

regulations of duly constituted authorities having jurisdiction.

 

10. In the event a conflict exists or arises between

this Agreement and a Party's FERC Gas Tariff, as amended from time

to time, it is agreed and understood that the latter shall

control.

 

11. This Agreement is for accounting and system

management purposes only, and is entered into by the Parties with

the understanding that the balancing activities provided for

hereunder will not subject any non-jurisdictional entity to

regulation by the Federal Energy Regulatory Commission as a

"natural gas company" under the provisions of the Natural Gas Act.

If, at any time, it should be determined that such balancing

activities do result in such regulation, then this Agreement shall

immediately terminate, and any remaining Operational Imbalance

shall be resolved by the Parties within thirty (30) days after

termination of this Agreement.

 

12. Any entity which shall succeed by purchase, merger

or consolidation to the properties, substantially as an entity, of

either Party, shall be subject to the obligations of its

predecessor to this Agreement. No other assignment of this

Agreement or of any of the rights or obligations hereunder shall

be made.