Cimarron River Pipeline, LLC

Original Volume No. 1

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Effective Date: 09/01/2008, Docket: CP08-17-001, Status: Effective

Original Sheet No. 239 Original Sheet No. 239

 

GENERAL TERMS AND CONDITIONS

 

13. RESOLUTION OF IMBALANCES

 

13.1 Responsibility to Control Imbalances:

 

(a) A Shipper receiving any transportation service from Transporter

will use, or will cause any party delivering or receiving Shipper's gas to

use, all reasonable efforts to ensure that receipts and deliveries of gas

are equal to Shipper's scheduled quantities at the Receipt and Delivery

Points pursuant to Shipper's TSA(s).

 

(b) Transporter will use all reasonable efforts to ensure that

delivery of gas pursuant to its TSA(s) is equal to Shipper's scheduled

quantities at the Delivery Point(s).

 

13.2 Resolution of Monthly Imbalances:

 

(a) Shipper and Transporter shall use all reasonable good faith

efforts to minimize imbalances and to eliminate any imbalances that occur as

soon as possible, taking into consideration (i) Transporter's commitments to

other Shippers, (ii) the period allowed for cure by affected downstream

pipeline(s) to avoid or minimize penalties that may be levied by them, and

(iii) the operational integrity of Transporter's facilities.

 

(b) Based on the information provided by Transporter to Shipper,

Shipper shall take prompt action to correct any imbalances by making

appropriate adjustments in Shipper's nominations, receipts, and deliveries

over the remainder of the Day or month, as applicable, to restore a balance

of receipts and deliveries on Transporter's system, as applicable (unless

Transporter directs Shipper to correct an imbalance over a shorter time to

avoid penalties or for operational reasons).

 

(c) If on any Day Transporter determines that Shipper's cumulative

actual receipts (adjusted for Fuel Reimbursement) and cumulative actual

deliveries are out of balance in excess of 5% of scheduled deliveries for

the month and Shipper fails to take corrective action as stated in

Subsection 13.2(b), then, upon two (2) days prior notice to Shipper (which

notice may be provided initially by telephone and followed by a written

confirmation), Transporter may adjust Shipper's nominations, receipts, and

deliveries over the remainder of the month or any shorter period deemed

necessary by Transporter to restore a balance of receipts and deliveries.

Nothing in this Section will affect Transporter's ability to issue an OFO

pursuant to Section 15.

 

(d) Transporter shall have no liability to Shipper(s) as a result of

imbalances incurred on downstream pipeline(s).