Black Marlin Pipeline Company

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 10/01/2002, Docket: RP02-454-000, Status: Effective

Third Revised Sheet No. 107A Third Revised Sheet No. 107A : Effective

Superseding: Second Revised Sheet No. 107A

RATE SCHEDULE FTS

Firm Transportation Service (continued)

(2) To the extent there is not an OBA for the subject receipt

point, Transporter and the interconnecting party will agree as

to which party is responsible for the predetermined allocation

(PDA), and if the party has agreed to submit the PDA,

Transporter shall allocate underages or overages in accordance

with the PDA;

(3) To the extent there is no OBA or PDA, Transporter shall

allocate any overage or underage pro-rata based on scheduled

and confirmed quantities at the receipt point.

(4) The responsibility for calculation and reporting of allocated

quantities should rest with the party responsible for

accepting NAESB allocation types. The party receiving

nominations should provide allocation statements.

A. Operational Balancing Agreement (OBA)

(1) An OBA is a contract between two parties which specifies the

procedures to manage operating variances at an interconnect.

Transporter is willing to negotiate and execute Operational

Balancing Agreements (OBAs) with appropriate parties that

operate natural gas facilities which interconnect with

Transporter's system. Such OBAs will provide that any

variance between actual quantities and scheduled and confirmed

quantities for any day shall be resolved in-kind promptly or

cashed-out pursuant to the terms of the OBAs.

(2) To the extent actual receipts vary from scheduled receipts at

a point of receipt for which Transporter has entered into an

OBA, Shippers utilizing such point of receipt shall be

responsible for any charges incurred by Transporter under the

OBA.

B. Predetermined Allocation Statements (PDA)

As a minimum, allocations should be provided by both contract and

location. The upstream or downstream party providing the point

confirmation should submit the pre-determined allocation to the

allocating party after or during confirmation and before the start

of the gas day. The types of allocation methodologies is a list from

which two parties may agree. If the two parties can not agree upon

an allocation methodology, pro rata based upon confirmed nominations

should be used as the default method. The party responsible for

custody transfer (the party performing the measurement function)

should provide the allocation. The PDA methods shall include

ranked, pro rata, percentage, swing, and operator provided value, as

such terms are used in the NAESB Standards. The same standard

allocation methodologies should be available for use at all points,

except those covered by an OBA. A new allocation detail may be

needed when a nomination changes.