Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 368 Original Sheet No. 368 : Pending

 

GENERAL TERMS AND CONDITIONS

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11. DETERMINATION OF DELIVERIES

 

11.1 PREDETERMINED ALLOCATIONS

 

In accounting for the volumes delivered by Natural, in

circumstances where multiple services are provided at any Delivery

Point, the sequence of volumes delivered shall be determined by a

predetermined allocation agreement between Natural and the operator

of the facilities immediately downstream of the point at which

Natural delivers gas. Natural may reject a methodology proposed by a

point operator for allocation of volumes if it determines, based on

its reasonable judgment, that the proposed methodology is

administratively infeasible or unduly burdensome or would have an

adverse impact on Natural, on Natural's system or on Shippers on

Natural's system not covered by the proposed methodology. Any such

rejection shall be in writing and shall specify the reasons for

rejection. Such determination shall be made on a non-discriminatory

basis, taking into account differences in factual circumstances

between various point operators. Allocation methodology types upon

which two parties may agree are: ranked, pro rata, percentages,

swing and operator provided value. Other examples of allocation

methods that can be used are combinations of methodology types.

Different methods may be submitted for overages and underages. The

predetermined allocation methodology at any Delivery Point may be

changed by agreement between Natural and the point operator as

frequently as daily. In the absence of such an agreement, Section

11.2 or 11.3, as applicable, shall control. Any new or proposed

change to the methodology should be sent to Natural on or before the

gas Day on which the methodology is to be effective. Natural shall

confirm receipt of the methodology within fifteen (15) minutes

through Natural's Interactive Website if received through Natural's

Interactive Website, or via EDI if received via EDI.

 

11.2 DEFAULT ALLOCATION OF DELIVERIES

 

In the absence of a Point Operator Allocation Agreement

under Section 11.3 below, or of any other allocation agreement as

referenced in Section 11.1 above, volumes delivered by Natural at

any Delivery Point shall be allocated in accordance with this

Section 11.2. Volumes delivered by Natural at any Delivery Point

shall be allocated among Shippers pro rata based on their respective

confirmed nominations. If actual deliveries are either more than or

less than confirmed nominations, the discrepancy shall be allocated

pro rata based on confirmed nominations. Charges may be applicable

under Section 12 of these General Terms and Conditions to the extent

the resulting allocated deliveries deviate from applicable delivery

rights and from confirmed nominations.