Transwestern Pipeline Company
Second Revised Volume No. 1
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Effective Date: 01/01/2003, Docket: RP00-490-002, Status: Effective
Third Revised Sheet No. 148 Third Revised Sheet No. 148 : Effective
Superseding: 2nd Revised Sheet No. 148
TRANSPORTATION SERVICE AGREEMENT - FORM N
5. Operational Imbalances shall be indexed to a price (hereinafter referred to as the "Monthly Index
Price" or "MIP") which shall be calculated as follows, as may be amended from time to time:
(a) Transporter shall first determine any Operational Imbalance quantity for each month on
a dekatherm basis. Transporter shall then determine a dollar equivalent utilizing the
dekatherm quantity and the established MIP ("Dollar Valued Operational Imbalance").
(b) For Dollar-Valued Operational Imbalances remaining from previous month(s), the Dollar-
Valued Operational Imbalance remaining from the previous month(s) will be added to the
Dollar-Valued Operational Imbalance amount for the Current Month and divided by the
current month's MIP to get the volume applicable to the Operation Imbalance for the
(c) The MIP for each month shall equal the average of the daily prices for that month as
reported in Gas Daily's table entitled "DAILY PRICE SURVEY" for delivery into
Transporter's mainline system ____________________. (If a range of prices is shown
for any particular day, the midpoint of such range shall represent that day's price at
a particular location.) If, for any reason, Gas Daily ceases to be available for a
particular month, the MIP for that month will equal the average of the applicable
daily prices for the above-described location for the applicable month as reported in
any other generally accepted available industry publication chosen by Transporter.
(d) Prices used to calculate the MIP will be prices quoted "into the mainline" in order to
eliminate inconsistencies due to varying gathering and treating charges. Transporter
will post the MIP for each month on its Internet Website within one (1) business day
following the end of the applicable month.
(e) Subject to the provisions of 4.b. above, Operational Imbalances that may arise from
time-to-time may be resolved, on a not unduly discriminatory basis, by payment on an
"in-kind" basis or by either Transporter or Company, as appropriate, purchasing
volumes necessary to clear the entire Dollar-Valued Operational Imbalance.
Transporter will accept nominations for and schedule the volumes necessary to resolve
the Operational Imbalance subject to operational considerations.