High Island Offshore System, L.L.C.
Third Revised Volume No. 1
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Effective Date: 04/07/1999, Docket: GT99- 17-000, Status: Effective
Original Sheet No. 181 Original Sheet No. 181 : Effective
FORM OF OPERATIONAL BALANCING AGREEMENT
this paragraph, either party shall have the unilateral right to adjust the actual flow of
gas at the Delivery Point or adjust nominations received and confirmed at this point in
order to correct for any differences.
(3) HIOS will allocate gas quantities which are to be delivered at the Delivery Point
among HIOS' respective Shippers pursuant to the terms of HIOS' F.E.R.C. Gas Tariff. Any
imbalance created when the actual physical flow is different than the allocated volumes
expressed in Dth will represent the "Operational Imbalance".
(4) Estimated operating quantities shall be used on a daily basis, during the current
month, to determine the estimated Operational Imbalance at the Delivery Point, with
physical flow adjustments to be made during the current month as mutually agreed to by
both Parties to adequately control and minimize imbalance levels.
(5) Any Operational Imbalance shall be corrected in a manner mutually agreed to in
writing by both Parties, within a period of time as is mutually agreed to by the Parties.
The ability to correct any Operational Imbalance shall be subject to the availability of
capacity and to the operational conditions that may exist on either Parties' pipeline
(6) In the event that a capacity constraint occurs on either Parties' pipeline system
which results in curtailment of gas quantities through the Delivery Point, the Party on
whose system the constraint has occurred shall determine the reallocation of quantities to
its Shippers. Such change in allocation shall be confirmed in writing pursuant to the
provisions of Paragraph (1) above.
(7) All gas quantities hereunder shall be reported in Dth. Measurement of gas for all
purposes hereunder shall be in accordance with the provisions set forth in HIOS' F.E.R.C.
(8) This Agreement shall be effective _______________ and shall continue until canceled
by either Party upon ten (10) days written notice. Any Operational Imbalance existing
between HIOS and the Interconnecting Pipeline after Agreement termination shall be
corrected within thirty (30) days after the final Operational Imbalance is agreed to in
writing by the Parties, or within such other period of time as may be mutually agreed to
by the Parties.