Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 11/01/1997, Docket: CP96-128-004, Status: Effective

Original Sheet No. 167 Original Sheet No. 167 : Effective






23. Balancing of Transportation Services (Continued)


(f) Imbalances shall be "Cashed Out" (Continued)


(2) Imbalance due Seller with Index Price basis


In the event of an imbalance caused when actual

total deliveries at the Point(s) of Delivery and/or

Delivery Point Area(s) exceed scheduled total

receipts at the Point(s) of Receipt, Seller shall

charge Buyer for such excess delivery. Such charge

shall be based on the Index Price for the relevant

Month multiplied by one of the following factors:


Imbalance Level Factor


Greater than 0% but less

than or equal to 5% 1.00

Greater than 5% but less

than or equal to 10% 1.20

Greater than 10% but less

than or equal to 15% 1.30

Greater than 15% but less

than or equal to 20% 1.40

Greater than 20% 1.50


The applicable imbalance percentage for purposes of

determining the applicable "cash out" price factor

shall be determined by dividing the amount of the

excess deliveries by the scheduled total receipts.

However, in the case where a portion of Buyer's

imbalance resulted from Seller decreasing receipts

for Buyer's account, such portion shall be excluded

from Buyer's imbalance for the purpose of

calculating the imbalance percentage. This portion

is, however, subject to "cash out".