K N Wattenberg Transmission LLC

First Revised Volume No. 1

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Effective Date: 06/25/2001, Docket: RP01-424-000, Status: Effective

Second Revised Sheet No. 99 Second Revised Sheet No. 99 : Effective

Superseding: First Revised Sheet No. 99

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

 

33. OPERATIONAL BALANCING AGREEMENTS

 

33.1 Terms Governing. For the purpose of minimizing operational

conflicts between various natural gas facilities with respect to the

delivery of gas to and from Transporter's facilities, Transporter is

willing to negotiate and execute OBAs with appropriate parties that

operate natural gas facilities interconnecting with Transporter's

system (any such party will be referred to herein as the "OBA Party").

Such OBAs shall specify the gas custody transfer procedures to be

followed by Transporter and the OBA Party for the confirmation of

scheduled quantities to be received by Transporter at Point(s) of

Receipt and delivered by Transporter at Point(s) of Delivery. Such

OBAs will provide that any variance between actual quantities and

scheduled and confirmed quantities for any day shall be resolved

pursuant to the terms of the OBA. To facilitate such determination of

variances on a timely basis, Transporter and the OBA Party will agree

in the OBA on necessary measurement and accounting procedures.

Transporter shall post on its Interactive Web Site those Points of

Receipt and Points of Delivery which are subject to an OBA.

Transporter will also provide to any party upon request a copy of any

executed OBA.

 

33.2 Prerequisite to Execution. It is Transporter's intent to

negotiate and execute OBAs on a non-discriminatory basis with any OBA

Party. However, Transporter shall have no obligation to negotiate and

execute OBAs with any Party that:

 

(a) is not creditworthy as determined pursuant to Section 29.4

of these General Terms and Conditions, substituting the term "OBA

Party" for "Shipper" for this purpose;

 

(b) does not maintain a gas control operation which is staffed

on a continuous, around-the-clock basis;

 

(c) does not have electronic flow measurement equipment to

which Transporter has access at the interconnect points which are

proposed to be subject to the OBA;

 

(d) would cause an increase in the level of regulators or flow

control regulation which Transporter is subject to prior to the

execution of the applicable OBA; or

 

(e) does not commit to timely and final determination of

imbalances based on reasonable available measurement technology.