Steckman Ridge, LP

Original Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-389-000, Status: Effective

Original Sheet No. 272 Original Sheet No. 272

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

17. OPERATIONAL BALANCING AGREEMENTS

 

17.1 Any imbalances arising under any Service Agreement between

Customer and Steckman Ridge that are attributable to variances (1)

between actual receipts of Gas and scheduled and confirmed

receipts of Gas at Point(s) of Receipt, or (2) between actual

deliveries of Gas and scheduled and confirmed deliveries of Gas at

Point(s) of Delivery, which Point(s) of Receipt and/or Point(s) of

Delivery are subject to Operational Balancing Agreements, as more

fully described in Section 17.2, on the Gas Day or Gas Days such

variances arise, will be resolved by Steckman Ridge pursuant to

the terms of the applicable Operational Balancing Agreement.

 

17.2 For the purpose of minimizing operational conflicts between

various facilities with respect to the delivery of Gas to and from

Steckman Ridge's facilities, Steckman Ridge is willing to

negotiate and execute Operational Balancing Agreements with

appropriate parties that operate natural gas facilities which

interconnect with Steckman Ridge's facilities (herein called "OBA

Party"). Such Operational Balancing Agreements shall specify the

gas custody transfer procedures to be followed by Steckman Ridge

and OBA Party for the confirmation of scheduled quantities to be

received by Steckman Ridge at Point(s) of Receipt and delivered by

Steckman Ridge at Point(s) of Delivery. Such Operational

Balancing Agreements will provide that any variance between actual

quantities and scheduled and confirmed quantities for any Gas Day

shall be resolved in-kind promptly. To facilitate such

determination of variances on a timely basis, Steckman Ridge and

OBA Party will agree in the Operational Balancing Agreement on

necessary measurement and accounting procedures. Steckman Ridge

will provide to any party upon request a copy of any executed

Operational Balancing Agreement.