National Fuel Gas Supply Corporation

Fourth Revised Volume No. 1

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Effective Date: 04/21/2010, Docket: RP10-504-000, Status: Effective

First Revised Sheet No. 386A First Revised Sheet No. 386A

Superseding: Original Sheet No. 386A

 

GENERAL TERMS AND CONDITIONS

 

14. ALLOCATION AND IMBALANCES (Cont'd.)

 

following methodology. First, the Net Creditable Penalties

will be allocated to each month during the Annual Billing

Period in proportion to the Creditable Penalties received by

Transporter during such month. Second, for each month during

the Annual Billing Period, Net Creditable Penalties allocated

to each month shall be credited to EFT, FT, FST and FT-S

shippers on a pro rata basis in accordance with the

transportation volumes Transporter has delivered to or for the

account of each such Shipper during the month, provided,

however, in such allocation deliveries to or for the account of

any shipper that incurred an Imbalance Penalty under Section

14.8 of these General Terms and Conditions or a Charge for

Unauthorized Tenders or Receipts under Section 15.3 hereof for

such month shall be deemed to be zero (0) Dth. Transporter

shall make credit payments or shall otherwise provide the

credit hereunder within 60 days of the end of the Annual

Billing Period. Such credit may be accomplished by a credit

against any amounts owed by Shipper to Transporter. If

Incremental Costs exceed Creditable Penalties with respect to

any Annual Billing Period, Transporter shall carry forward the

net underrecoveries to the subsequent Annual Billing Period and

may offset such net underrecoveries against any future Net

Creditable Penalties that may occur in a subsequent Annual

Billing Period. For purposes of this section, the term

"Creditable Penalties" shall include the sum of (A) Imbalance

Penalties collected by Transporter under Section 14.8 of these

General Terms and Conditions; (B) Charges for unauthorized

tenders and receipts collected by Transporter under Section

15.3 hereof, and (C) interest on the amounts described in (A)

and (B) above accrued on a monthly basis at the then effective

prime interest rate (JPMorgan Chase Bank, NA). For purposes of

this section, the term "Incremental Costs" shall include

reasonable costs incurred with respect to transactions with

other parties to replace gas or otherwise to respond to

operational consequences of the imbalances or events giving

rise to Creditable Penalties that are not offset against cash-

out revenues under Section 14.10(c) of these General Terms and

Conditions, together with interest thereon accrued on a monthly

basis at the then effective prime interest rate (JPMorgan Chase

Bank, NA).