Monroe Gas Storage Company, LLC

Original Volume No. 1

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Effective Date: 04/29/2009, Docket: RP09-447-000, Status: Effective

Original Sheet No. 128 Original Sheet No. 128

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

3. POINT(S) OF RECEIPT AND POINT(S) OF DELIVERY (Continued)

 

3.4 Transportation Imbalances. In the event that Operator or Customer

delivers or causes to be delivered to Transporter at the Point(s) of

Receipt or Point(s) of Delivery a quantity of gas not equal to the

quantity of gas received or taken by Customer or Operator, a

"Transportation Imbalance" may occur. Provided that Operator has taken

or delivered the quantity of gas nominated by Customer and scheduled by

Transporter, Customer shall be liable for all imbalances under its

transportation agreement with Transporter. Upon notification by Customer

or Transporter that a Transportation Imbalance exists because Operator

failed to deliver or receive the quantity of gas nominated by Customer

and scheduled by Transporter, Operator will endeavor to correct the

Transportation Imbalance subject to any restrictions imposed by

Transporter, but Operator shall be solely responsible and liable for any

charges, penalties, costs and expenses incurred or payable by either

Party as a result of the Transportation Imbalance except to the extent

that the Transportation Imbalance was caused by an event of Force

Majeure. Customer agrees to use its best efforts to prevent or diminish

any occurrences of imbalances.

 

3.5 Measurement. Customer and Operator agree that the quantity of gas

delivered hereunder shall be measured by Operator in accordance with

Transporter's pipeline tariff, and, as such, may be allowed to fluctuate

within the applicable measurement or flow tolerances on a daily and

monthly basis.

 

3.6 Costs and Penalties. Customer shall hold Operator harmless for all costs

and penalties which may be assessed by Transporter under Customer's

transportation agreement with Transporter, unless the costs and

penalties are due to the negligence of Operator. Customer and Operator

shall cooperate with each other and with Transporter to verify delivery

and receipt of the volumes of gas delivered hereunder on a timely basis.

 

3.7 Downstream and Upstream Transportation. Customer shall be responsible

for transportation from the Point(s) of Delivery located on Operator's

Facility and payment of all transportation charges relating thereto.

Customer shall be responsible for transportation to the Point(s) of

Receipt located on Operator's Facility and payment of all transportation

charges relating thereto.