Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2001, Docket: RP02- 14-002, Status: Effective

Original Sheet No. 140 Original Sheet No. 140 : Effective





9.8 Balancing at Termination of Service Agreement. Following the

termination of a Service Agreement, or at Transporter's discretion in the

event Shipper fails to make prompt payment under Section 10 (Billing and

Payment) of the General Terms and Conditions, or if Transporter

redetermines Shipper's creditworthiness pursuant to Section 3.9 of the

General Terms and Conditions, Transporter may take the following steps:


(a) Shipper under that Service Agreement shall be required to correct

any outstanding imbalance in receipts and deliveries within 60 days after

Transporter determines, and notifies Shipper, that such an imbalance

exists, or within such longer period of time agreed to by Shipper and

Transporter (the balancing period). Shipper shall correct in-kind any

undertender imbalance by making arrangements upstream of Transporter for

delivery to Transporter to correct such undertender imbalance during the

balancing period. Shipper shall correct in-kind any overtender imbalance

by (i) obtaining a service agreement (e.g., under the IT-1 Rate Schedule)

from Transporter pursuant to the terms of this Tariff, and scheduling to

receive such overtender imbalance quantities from Transporter under such

service agreement pursuant to the terms of this Tariff, or (ii) otherwise

making arrangements pursuant to this Tariff to dispose of its overtender

imbalance. If, after the end of the balancing period, Transporter

determines that an imbalance continues to exist in Shipper's account,

Transporter shall resolve such imbalance as set forth below.


(b) If Transporter determines that it delivered quantities to or for

Shipper in excess of the quantities tendered to Transporter by or for

Shipper, Transporter shall assess and collect from Shipper a reimbursement

fee. Shipper shall pay Transporter a reimbursement fee for each Dth of

such outstanding imbalance, grossed up for the Retainage percentages

applicable to Transporter's IT-1 Rate Schedule. The reimbursement fee

shall be the sum of: (i) 150% of the Spot Market Price for the Month

during which such quantities are made up by Transporter; plus (ii) the cost

of transporting such quantities. "Spot Market Price", for purposes of this

Section, shall mean, for the applicable Month, the "Chicago-LDCs, Large End

Users Midpoint" price index, as published in Gas Daily's Daily Price Survey

or successor publication. Upon payment of such charge, the imbalance shall

be removed from Shipper's account.