El Paso Natural Gas Company
Second Revised Volume No. 1A
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Effective Date: 04/01/2010, Docket: RP10-454-001, Status: Effective
Third Revised Sheet No. 287B.01 Third Revised Sheet No. 287B.01
Superseding: Second Revised Sheet No. 287B.01
TRANSPORTATION GENERAL TERMS AND CONDITIONS
10. IMBALANCE MANAGEMENT (continued)
10.3 Cash Out - All monthly imbalances shall be subject to the following
cash out provisions. Such cash out shall be accomplished using the
relevant Monthly Cash Out Index Price pursuant to Section 10.3(b),
provided, however, that for purposes of cash out, monthly imbalances
associated with PPMAs shall be deemed to have occurred consistent
with Section 10.2(h).
(a) Determination of Cash Out Quantities - The term "cash out"
shall refer to the valuation of an imbalance at a market-
related price pursuant to the requirements of this section.
Application of the cash out process will result in a monetary
value due to the Shipper or Transporter which will result in
reduction of the imbalance to the applicable threshold level.
(i) Transporter and Shipper shall cash out that portion of
an imbalance that exceeds the thresholds described in
Sections 10.3(a)(ii) and 10.3(a)(iii) by applying the
applicable Cash Out Index Price to the imbalance
quantity in excess of the threshold quantity. Any
remaining end-of-month imbalance will be carried forward
to be resolved in future Months as described in Sections
10.2 and 10.3.
(ii) The monthly threshold will be calculated by multiplying
the Shipper's aggregate scheduled quantity in the
applicable Month by the following percentages:
(1) The Month 1 threshold shall be 5%.
(2) The Month 2 threshold shall be 3%.
(2) The Month 3 threshold shall be 0%.
(iii) Small Quantity Monthly Imbalance: The cash out
thresholds described in Section 10.3(a)(ii) will not
apply to any TSA with an end-of-month imbalance less
than 2,000 dth, unless the Shipper specifies otherwise.
However, each January, Transporter will cash out any
monthly Small Quantity Imbalances accrued during the 12
Months ended the previous November that were not
resolved by the imbalance resolution methods described
in Section 10.2. The cash out will be priced at 100% of
the previous December System Cash Out Index price
described in Section 10.3(c)(iv).