Crossroads Pipeline Company

Original Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-145-001, Status: Effective

Substitute Original Sheet No. 51 Substitute Original Sheet No. 51 : Effective

Superseding: Original Sheet No. 51


(b) When an OFO is issued, daily scheduling penalties applicable to the affected

Shipper or party and affected Quantities will be replaced by the penalty

provisions of the OFO.


21.4 Nothing shall limit Crossroads' right to take action as may be required to

physically adjust actual receipts and actual deliveries of Gas in order to

alleviate conditions which threaten the integrity of its system.


21.5 If Shipper or OBA Party has no daily scheduling variance on receipts and no contract

imbalances, Crossroads will not issue an OFO requiring that Shipper or party to

increase receipts. Additionally, Shipper will not be required to increase

deliveries to Crossroads in excess of Shipper's MDQ.


21.6 Situation Reports, Notices and Indemnity


(a) Crossroads shall use reasonable efforts to provide Shipper or OBA Party

through the Crossroads EBB system with such notice of OFOs as is reasonable

under then existing conditions, and shall in any event confirm the notice by

telephone and facsimile transmission. Such notice shall be provided to the

person, including any agent, designated by the Shipper or OBA Party to submit

or confirm nominations.


(b) Crossroads shall have no responsibility to inform Shipper's or OBA Party's end

users, suppliers, other transporters or any others involved in the transaction,

as to any OFO.


(c) Shipper or OBA Party shall indemnify Crossroads from and against any and all

losses, damages, expenses, claims, suits, actions, and proceedings whatsoever

threatened, incurred, or initiated as a result of Crossroads' performance

hereunder, except to the extent such loss, damage, expense, claim, suit, action

or proceeding is the result of Crossroads' negligence, bad faith or willful





22.1 For the purpose of minimizing operational conflicts between various pipeline

facilities with respect to the delivery of gas to and from Crossroads' facilities,

Crossroads may execute an Operational Balancing Agreement ("OBA") with an operator

of a Point of Receipt or a Point of Delivery interconnecting with Crossroads'

system (herein called OBA Party). Such an OBA shall specify the gas custody

transfer procedures, including but not limited to, allocations of gas flow among

parties and/or contracts, to be followed by Crossroads and OBA Party for the

confirmation of scheduled quantities to be received by Crossroads at the Point of

Receipt or delivered by Crossroads at Point of Delivery. Such an OBA will provide

that any variance between actual quantities and confirmed nomination quantities at

the point where the OBA is in place for any Gas Day shall be subject to daily

scheduling and monthly balancing provisions as set forth in the applicable Rate

Schedule under which the gas is transported on Crossroads and that such daily

scheduling and monthly balancing variances are the responsibility of the OBA Party.

The tolerance level for an OBA shall be ten percent (10%).


To facilitate the determination of variances under an OBA on a timely basis, Crossroads

and the OBA Party will agree on necessary measurement and accounting procedures.

Crossroads shall post on the Crossroads EBB System those Points of Receipt and Points

of Delivery at which an OBA is in effect.


22.2 Crossroads shall have no obligation to negotiate and execute an OBA with any party.


22.3 Pre-determined Allocations ("PDAs"): In the absence of an effective OBA at any

point of receipt or delivery, gas shall be allocated on a daily basis among parties

and/or contracts at any such point in accordance with a PDA or, in the alternative, in

accordance with the default mechanism set forth in this section.