K N Interstate Gas Transmission Co.

Second Revised Volume No. 1-A

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Effective Date: 11/01/1994, Docket: RP94-397-000, Status: Effective

Original Sheet No. 134 Original Sheet No. 134 : Superseded

 

Form of Operational Balancing Agreement - cont.

 

 

ARTICLE II.

NOMINATIONS AND CONFIRMATIONS

 

Not later than one business day prior to the first day of each calendar

month in which service is to be provided, Transporter and the OBA Party shall

confirm the quantities nominated to be delivered and received each day at the

point(s) of interconnection on the first day of the month following the

confirmation. Any modification or adjustment to such confirmed quantities

must be confirmed by Transporter and the OBA Party prior to the commencement

of the revised service. Neither party shall be obligated to revise the

confirmed quantities in effect unless the other Party notifies it by 4:00

p.m. CT, on the day prior to the day the change is to be made, unless the

Parties mutually agree otherwise. Transporter shall provide evidence of such

confirmations (in writing or by electronic means) within two business days

after such confirmation, unless the Parties mutually agree otherwise. If at

any time during a month the OBA Party fails to respond to Transporter's

request to confirm the quantities to be transported at the point(s) of

interconnection, then Transporter may, at its option, terminate this

Agreement at the end of the current calendar month upon prior written notice

to the OBA Party. If at any time during a month Transporter fails to respond

to the OBA Party's request to confirm the quantities to be transported at the

point(s) of interconnection, then Transporter may, at its option, terminate

this Agreement at the end of the current calendar month upon prior written

notice to Transporter.

 

The Parties intend that the quantity of gas actually delivered and

received each day at the point(s) of interconnection will equal the

confirmed, scheduled nominations of the Parties. Each Party will allocate

the quantity that is to be delivered and received at the point(s) of

interconnection among its Shippers pursuant to the confirmed, scheduled

nominations. Any difference between the actual physical flow of gas at the

point(s) of interconnection each day and the confirmed, scheduled,

nominations of receipts and deliveries for such day is the "Daily Operational

Imbalance," which is the responsibility of the Parties to eliminate pursuant

to this Agreement.