W T G Hugoton, LP
Original Volume No. 1
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Effective Date: 08/01/2007, Docket: CP06- 90-002, Status: Effective
Original Sheet No. 247 Original Sheet No. 247 : Effective
GENERAL TERMS AND CONDITIONS
28.3 Determination of Imbalance Index Prices (IIPs)
(a) The Imbalance Index Price shall be determined each month and shall
be equal to the arithmetic average of the five average weekly prices at
Panhandle, TX-Okla, as published in "Gas Daily." The five-week period is
defined as beginning on the first Tuesday of the calendar month for which the
IIP is being established and ending on the first or second Monday of the
following month, whichever is applicable, to arrive at a five-week period.
Imbalance quantities will be dollar valued using the IIPs set forth above.
(b) If a price discovery is eliminated or redefined, or ceases to be
published in "Gas Daily," WTG Hugoton will notify shippers via an Internet
website posting. WTG Hugoton will make a tariff filing to change the IIP
(c) WTG Hugoton will electronically post, on or before the 15th day of
the following month, the IIPs, including the tiered values, to be used for the
previous calendar month.
28.4 Tiering of IIPs
The IIP is tiered based upon the monthly imbalance level of the legal
entity, in accordance with the following schedule:
Imbalance Level* Due WTG Hugoton Due Shipper
------------------------- ----------------- ------------
0% - 3% IIP * 1.00 IIP * 1.00
Greater than 3% up to 5% IIP * 1.02 IIP * 0.98
Greater than 5% up to 10% IIP * 1.10 IIP * 0.90
Greater than 10% up to 15% IIP * 1.20 IIP * 0.80
Greater than 15% up to 20% IIP * 1.30 IIP * 0.70
Greater than 20% IIP * 1.40 IIP * 0.60
* The imbalance level is determined by dividing the legal entity's monthly
Volumetric Imbalance by its monthly deliveries.
The tier valuation factors listed above will be applied to the portion of
the imbalance level which falls within each tier.