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. 250 Original Sheet No. 250 : Effective

 

GENERAL TERMS AND CONDITIONS

 

28.8 Imbalance Trading. Imbalance trading activity shall follow the steps

outlined below. All imbalance trading will be on a dekatherm basis.

 

(a) By the ninth (9th) business day of the month following the month

the imbalance occurred, WTG Hugoton will automatically post on its website

Shipper's imbalances (netted by legal entity) by type of imbalance.

 

(b) A Shipper may negotiate with other Shippers, or Shipper's agent, to

trade the existing imbalances. An agent is allowed to trade imbalances on

behalf of more than one shipper at the same time. There is no requirement

that imbalances for trading must be incurred on the same day.

 

(c) All Shippers will have until the close of the 17th business day of

the month following the month the imbalance occurred to complete imbalance

trading.

 

(d) Shippers must notify WTG Hugoton prior to the close of the 17th

business day via fax or e-mail of the volumes traded and the trading partners

(all Shippers in the trade must notify WTG Hugoton of the intent and the

amount traded).

 

(e) Imbalance trades will be executed at no additional cost to the

Shipper.

 

(f) After the close of the 17th business day of the month following the

month the imbalance occurred, WTG Hugoton will calculate Shipper's final

imbalance for the prior month's gas flow. Any remaining imbalances net of

trading will be subject to the resolution mechanism outlined in Section 28.6

(b).

 

(g) Any discrepancies between trading Shippers' imbalance trade

notifications to WTG Hugoton will result in the trade not being confirmed and

the volume remaining as an imbalance to both Shippers which will be subject to

Section 28.6 (b). However, an initiating Shipper may cure any defect in its

imbalance trade notification so long as the Shipper does so prior to the

receipt of the trade confirmation. Imbalance trades can only be withdrawn by

the initiating trader and only prior to the confirming trader's confirmation

of the trade. Imbalance trades are considered final when confirmed by the

confirming trader and effectuated by WTG Hugoton.