National Fuel Gas Supply Corporation

Third Revised Volume No. 1

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Effective Date: 08/01/1993, Docket: RS92- 21-001, Status: Effective

Original Sheet No. 198 Original Sheet No. 198 : Superseded

 

 

 

GENERAL TERMS AND CONDITIONS

 

 

14. ALLOCATION AND IMBALANCES (Cont'd.)

 

 

The Negative Imbalance Cash-Out Price is a price per

Dth which is applied to the amount of the Shipper's

negative imbalance. Shipper's regular invoice for

transportation services will include the money owed by

Shipper under this Negative Imbalance Cash-Out, which

will be subject to all payment and collection

requirements applicable to that bill. Any money which

Shipper has paid as a Transportation Balancing Fee for

activity under a given contract during a given month

shall be credited against (but shall not reduce below

zero) Shipper's obligation to pay a Negative Imbalance

Cash-Out Price on that contract for that same month.

Upon receipt of payment, Transporter will make gas

accounting entries reducing the amount of Shipper's

negative imbalance accordingly.

 

Transporter shall post the Negative Imbalance Cash-Out

Price for each month on its Electronic Bulletin Board.

The applicable Negative Imbalance Cash-Out Price will

be equal to the highest monthly Negative Imbalance

Cash-Out Price for any one of the three months

immediately following the activity month. The Negative

Imbalance Cash-Out Price is based upon the approximate

cost for southwest spot gas plus the cost of

transportation to National's system, and will be

calculated as follows:

 

NICOP = Negative Imbalance Cash-Out Price

 

NICOP = 2 x (SWI + WAT)

 

SWI = Southwest Index, which is the arithmetic average of

all spot gas index prices per Dth reflective of the

first day of the month quoted by: (i) Natural Gas

Intelligence "Spot Gas Prices", "Delivered to

Pipelines", "30-Day Supply Transactions", and (ii)

Inside FERC "Gas Market Report", for deliveries of

gas produced in Texas and Louisiana into the system

of Tennessee Gas Pipeline Company ("TGP"), Texas

Eastern Transmission Corporation ("TETCO") or

Transcontinental Gas Pipe Line Corporation

("Transco").