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. 386 Original Sheet No. 386 : Pending

 

 

GENERAL TERMS AND CONDITIONS

----------------------------

 

13.3 CASHOUT PROCEDURES

 

(a) Any imbalance remaining will be cashed out on a

tiered basis pursuant to the following schedule:

 

OVERAGE UNDERAGE

IMBALANCE LEVEL (Natural pays Shipper) (Shipper pays Natural)

---------------- ---------------------- ----------------------

 

0% to 5% 100% x AMIP 100% x AMIP

 

Greater than

5% to 10% 90% x AMIP 110% x AMIP

 

Greater than

10% to 15% 80% x AMIP 120% x AMIP

 

Greater than

15% to 20% 70% x AMIP 130% x AMIP

 

Greater than 20% 60% x AMIP 140% x AMIP

 

Notwithstanding the foregoing, any imbalances created during a

Critical Time to the benefit of the system that are remaining at the

end of the month will be separately cashed out at 100% of the AMIP.

 

(b) Following any offsetting with other Shippers, a

Shipper's remaining imbalance will be cashed out based on the

percentage of that imbalance compared to the total deliveries for that

Shipper during the month. For example, if the Total Deliveries were

1,000 Dth and the remaining underage imbalance after offsetting with

other Shippers was 100 Dth, the total Imbalance Level would be 10%.

The first 5% (50 Dth) would be cashed out at 100% of the AMIP and the

remaining 50 Dth would be cashed out at 110% of the AMIP.

 

(c) The Average Monthly Index Price (AMIP) is the

arithmetic average of the Weekly Index Prices (WIPs). The WIP for any

week is the arithmetic average of the following three index prices

reported in 'Gas Price Report' issued by "Natural Gas Week":

 

(1) Louisiana, Gulf Coast, Onshore, Spot Delivered

to Pipeline.

 

(2) Texas, Gulf Coast, Onshore, Spot Delivered to

Pipeline.