Elba Express Company, L.L.C.

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 03/01/2010, Docket: RP10-342-000, Status: Effective

Original Sheet No. 56 Original Sheet No. 56

14. RESOLUTION OF IMBALANCES AND ADJUSTMENT

(a) COMPANY shall endeavor to minimize imbalances (described below)

and to resolve imbalances in-kind by entering into OBAs with Point

Operators at all pipeline interconnections, using flow control

equipment installed pursuant to Section 11 of these General Terms

and Conditions, imposing operational flow orders pursuant to

Section 30 of these General Terms and Conditions, offering

imbalance management tools, such as make-up nominations in Section

12.1(g) of these General Terms and Conditions and trading pursuant

to Section 14(e) of these General Terms and Conditions, and by

creating disincentives to imbalances, such as the provisions of

this Section.

To the extent COMPANY does not eliminate all imbalances

nonetheless accrued by the party responsible for the imbalance

(whether a SHIPPER under its transportation agreements or the

Point Operator that is party to the OBA), such imbalances shall be

resolved on a monthly basis pursuant to the provisions herein.

After each month of transportation on COMPANY'S system, COMPANY

will calculate the imbalance which exists between the quantities

of gas allocated each Day to SHIPPER for its account at the

Receipt Points during that month and the quantities of gas

allocated each Day to SHIPPER for its account at the Delivery

Points during that month. All such imbalances (overdeliveries and

underdeliveries to COMPANY) accrued by SHIPPER under each of its

transportation (or any such agreements under which SHIPPER has

been appointed imbalance aggregation agent with authority to make

and receive payments under this section) will be combined to

derive a "Net Monthly Imbalance" (in Dth) for purposes of the

following calculations. SHIPPER'S Net Monthly Imbalance then will

be divided by the lesser of (i) the actual Dth's of gas received

or (ii) the actual Dth's of gas delivered under all such

agreements during the month to produce SHIPPER'S Net Imbalance

Percentage for the month. If SHIPPER has elected to be allocated

the variances in deliveries at specified Delivery Points under a

Swing PDA, then such SHIPPER'S Net Imbalance Percentage shall be

determined by dividing its Net Monthly Imbalance by the sum of (i)

the lesser of the actual Dth's received or delivered under all of

the SHIPPER'S agreements during the month, and (ii) the actual

Dth's allocated to third-party SHIPPERS' transportation agreements

at the Delivery Points where SHIPPER has elected to be allocated

the variance in deliveries during the month. If the Net Monthly

Imbalance calculated above under SHIPPER'S Service Agreement(s)

varies from the estimated imbalance(s) posted by COMPANY for such

agreement(s) during the month, then COMPANY shall also calculate

an "Estimated Imbalance Percentage" for that month as follows for

purposes of determining the maximum percentage at which SHIPPER'S

Net Monthly Imbalance shall be resolved below. The Estimated

Imbalance Percentage shall be equal to the sum of the estimated

imbalances (over-deliveries and under-deliveries) in effect for

each of SHIPPER'S above-referenced Service Agreements at the end

of the month, as posted on SoNet Premier, ("Estimated Monthly

Imbalance") divided by the lesser of (i) the quantity of gas

deemed to be received or (ii) the quantity of gas deemed to be

delivered under all such agreements during the month.