MidContinent Express Pipeline LLC

Original Volume No. 1

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Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective

Original Sheet No. 147 Original Sheet No. 147

 

GENERAL TERMS AND CONDITIONS

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6.10 NOMINATION PRIORITIES

 

As part of the nomination and transfer nomination

process, if there is more than one supply source nominated to be

delivered to a single Delivery Point or buyer, the nomination or

transfer nomination must identify how and which supply sources should

be cut in the event all nominated deliveries are not or cannot be

made. Similarly, the nomination or transfer nomination must identify

which delivery should be cut in the event Gas is not or cannot be

received as nominated (i.e., ranking). Ranking is to be included in

the list of data elements. MEP is to use Shipper provided rankings

when making reductions during the scheduling process when this does

not conflict with tariff-based rules.

 

6.11 OPERATIONAL BALANCING

 

MEP agrees that it will negotiate with each entity that

operates facilities interconnecting with MEP at Delivery Points

(Balance Operator) in a good faith effort to reach an agreement to

deal with imbalances at such Delivery Point(s) (at Receipt Points,

MEP may rely on PDAs under Section 7 of these General Terms and

Conditions), which OBA Agreement would be a form of a Predetermined

Allocation, subject to the following conditions:

 

(a) Such agreement must set out a mutually agreeable

procedure for dealing at the Delivery Point(s), as between MEP and

Balance Operator, with any difference between confirmed nominations

and actual physical Gas flow caused by operational conditions; such

an agreement may include imbalances charges and penalties, and/or

limitations on the volume of imbalance which may be accommodated, but

MEP is not obligated to agree to include any provisions for cashout

of imbalances;

 

(b) The Balance Operator must meet the same

creditworthiness standards as Shipper;

 

(c) MEP and Balance Operator must not have previously

entered into such agreement which was terminated because of Balance

Operator's failure to perform. Nothing herein is intended to

restrict MEP's right to terminate in accordance with its terms any

agreement entered into hereunder, including without limitation the

right to terminate for Balance Operator's failure to perform

consistent with its obligations under the agreement.