Destin Pipeline Company, L.L.C.
Original Volume No. 1
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Effective Date: 09/01/1998, Docket: CP96-655-003, Status: Effective
Original Sheet No. 231 Original Sheet No. 231 : Effective
OPERATIONAL BALANCING AGREEMENT
constraints at the Point. In the event that a capacity constraint occurs on
either Party's pipeline system which results in the limitation of quantities
through the Point, the Party on whose system the constraint has occurred
shall determine the change in Scheduled Quantities for its shippers. Such
change in Scheduled Quantities shall be confirmed in writing pursuant to the
provisions of Paragraph 1.1 above. If the constraint occurs at the Point,
the Party that operates the measurement facilities at the Point shall be
deemed to have the constraint on its system.
1.7 Operational Integrity - Nothing in this Agreement shall limit Destin's or
Operator's ability to mutually agree to take action as may be required to
adjust deliveries or receipts of gas at the Point in order to alleviate
conditions which threaten the integrity of either system.
1.8 Hourly Rate - The Parties agree that confirmed nominations scheduled to be
received and delivered will occur at a uniform hourly rate or at an hourly
rate agreeable to both Parties as communicated by each Party's appropriate
confirmation representative or gas dispatching department.
CORRECTION AND RESOLUTION OF PIPELINE IMBALANCES
2.1 Corrections in Flow Rates During A Month - Adjustments in nominations and/or
scheduled deliveries or receipts at the Point shall be made by Operator and
Destin during the transportation month, if necessary, to control imbalance
levels by confirming such adjustments with the other Party pursuant to the
procedures established in Section 1.1. If either Party fails to take such
corrective action, the other Party may, upon prior written notice, terminate
this Agreement at the end of the current calendar month.
2.2 Resolution of Imbalances
(a) Each Monthly Operational Imbalance shall be resolved in the following
month by dividing the Monthly Operational Imbalance by the actual