Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 01/07/2008, Docket: RP08-113-000, Status: Effective

Second Revised Sheet No. 237 Second Revised Sheet No. 237 : Effective

Superseding: First Revised Sheet No. 237

GENERAL TERMS AND CONDITIONS

(continued)

 

7. INTERCONNECTING FACILITY GAS FLOW ALLOCATION METHODS

 

7.1 For all natural gas to be received by Pipeline, Customer shall

cause the operating party of the facilities immediately upstream

of Pipeline's Points of Receipt to provide a predetermined

allocation methodology acceptable to Pipeline to be used in

allocating said gas through the Points of Receipt.

 

7.2 In addition, for all natural gas to be delivered to Customer,

Customer shall cause the operating party of the facilities

immediately downstream of Pipeline's Points of Delivery to provide

a predetermined allocation methodology acceptable to Pipeline to

be used in allocating said gas through the Points of Delivery.

 

7.3 The allocation methodology shall be provided to Pipeline prior to

the start of the Gas Day and shall prescribe the methodology for

all Service Agreements for which quantities have been scheduled at

such Points of Receipt and Points of Delivery.

 

7.4 Parties may agree upon one of the following allocation

methodologies: ranked, pro rata, percentage, swing and operator

provided value. Pipeline will accept such allocation methodology

if operationally and administratively feasible. In the event no

methodology acceptable to Pipeline is provided, Pipeline shall

allocate the actual quantities received or delivered by Pipeline

among Customers pro rata, based on the ratio of each scheduled

quantity to the total scheduled quantities of gas at such Points

of Receipt or Points of Delivery applied to the total quantity

actually received or delivered by Pipeline.

 

7.5 Changes to the daily allocation methodology may be made. Such

changes must be submitted and confirmed in advance of the

effective date and shall be effective prospectively. No

retroactive reallocation of any transaction shall be permitted.

 

7.6 Pipeline shall not have any liability to any Customer as a result

of Pipeline's reliance on any allocation methodology described

herein, and Customer shall indemnify Pipeline from and against any

and all losses, damages, expenses, claims, suits, actions and

proceedings whatsoever threatened, incurred or initiated as a

result of Pipeline's reliance on such allocation methodology.