U-T Offshore System, L.L.C.
Third Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective
Second Revised Sheet No. 110 Second Revised Sheet No. 110 : Superseded
Superseding: First Revised Sheet No. 110
U-T OFFSHORE SYSTEM
FORM OF OPERATIONAL BALANCING AGREEMENT
WHEREAS, U-T Offshore System's (U-TOS) pipeline facilities and _____________________'s
Interconnecting Pipeline) facilities directly interconnect at the U-TOS delivery point at
Johnson's Bayou, Cameron Parish, Louisiana (Delivery Point);
WHEREAS, U-TOS has entered into one or more transportation agreements whereby U-TOS
transports gas which its Shippers desire to be delivered at the Delivery Point;
WHEREAS, from time to time, total gas quantities tendered by U-TOS at the Delivery
Point are either greater than or lesser than the aggregate of all Shippers' allocated
quantities intended for delivery at the Delivery Point, resulting in inadvertent over- or
under-deliveries relative to allocated quantities;
NOW THEREFORE, U-TOS and ____________________________ "The Parties") agree that such
over-or under-deliveries at the Delivery Point be treated in the following manner:
(1) Prior to the first day of each month, the Parties shall confirm in writing the
nominations received by each Shipper and how these gas quantities are to be allocated each
day of the month among those Shippers for whom the Parties are delivering or receiving the
gas. Any changes to such confirmed nominations shall be effective only if agreed to in
writing by both Parties. Such written communication shall be substantially in the form set
out on the attached Exhibit 1 or in any other form mutually agreeable to the Parties. By the
tenth (10) business day of the month, U-TOS shall furnish the Interconnecting Pipeline with
a signed summary of the agreed-upon allocations for the Shippers for the previous month.
Interconnecting Pipeline shall sign and return a copy of such monthly allocation summary
evidencing Interconnecting Pipeline's concurrence.
(2) The Parties intend that the gas quantities actually delivered and received each
day that the Delivery Point will equal gas quantities transported by U-TOS and allocated in
accordance with the terms and conditions of U-TOS' F.E.R.C. Gas Tariff and agree to make all
reasonable efforts on a daily basis to maintain the actual quantity flowing through the
Delivery Point at a level equal to the allocated quantities. Daily variances in actual gas
flow from the allocated transportation quantities shall not exceed five percent (5%) of the
daily allocated transportation quantities with the total monthly variance from the allocated
quantity not to exceed five percent (5%) of the total gas quantity allocated to flow for that
month. If the imbalance under this Agreement exceeds the variances set forth in this
paragraph, either party shall have the unilateral right to adjust the actual flow of gas at
the Delivery Point or adjust nominations received and confirmed at this point in order to
correct for any differences.
(3) U-TOS will allocate gas quantities which are to be delivered at the Delivery Point
among U-TOS' respective Shippers pursuant to the terms of U-TOS' F.E.R.C. Gas Tariff. Any
imbalance created when the actual physical flow is different than the allocated volumes,
expressed in Dth, will be the "Operational Imbalance."
(4) Estimated operating quantities shall be used on a daily basis, during the current
month, to determine the estimated Operational Imbalance at the Delivery Point, with physical
flow adjustments to be made during the current month as mutually agreed to by both Parties
to adequately control and minimize imbalance levels.
(5) In the event that a capacity constraint occurs on either Parties' pipeline system
which results in curtailment of gas quantities through the Delivery Point, the Party on whose
system the constraint has occurred shall determine the reallocation of quantities to its
Shippers. Such change in allocation shall be confirmed in writing pursuant to the provisions
of Paragraph (1) above.