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. 162 Original Sheet No. 162

 

GENERAL TERMS AND CONDITIONS

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

 

(4) Underage Imbalance - "Underage Imbalance"

shall mean that excess deliveries under an Agreement are due from Shipper

to MEP.

 

(5) Underage Average Monthly Index Price -

"Underage Average Monthly Index Price" or "UAMIP") shall mean the volume-

weighted average of the applicable monthly index prices used in

determining cashout amounts to resolve Underage Imbalances, as provided

in this Section 10.4.

 

(b) Any Overage and/or Underage Imbalances remaining

after trading of Imbalances will be cashed out on a tiered basis pursuant

to the following schedule, unless other means of disposition are mutually

agreed between MEP and Shipper:

 

Overage Underage

(MEP Pays (Shipper

Imbalance Level Shipper) Pays MEP)

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

 

0% to 5% 100% x OAMIP 100% x UAMIP

Greater than 5% to 10% 90% x OAMIP 110% x UAMIP

Greater than 10% to 15% 80% x OAMIP 120% x UAMIP

Greater than 15% to 20% 70% x OAMIP 130% x UAMIP

Greater than 20% 60% x OAMIP 140% x UAMIP

 

A Shipper's remaining Overage and/or Underage

Imbalances will be cashed out based on the percentage of the respective

Overage or Underage Imbalance, as applicable, compared to the total

allocated receipts for that Shipper during the Month. An Overage

Imbalance will be cashed out at the Overage Average Monthly Index

Price, and an Underage Imbalance will be cashed out at the Underage

Average Monthly Index Price, as defined in Section 10.4(g) and Section

10.4(h) hereof, respectively. For example, if the total allocated

receipts 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

UAMIP and the remaining 50 Dth would be cashed out at 110% of the

UAMIP.