El Paso Natural Gas Company
First Revised Volume No. 1-A
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Effective Date: 10/01/1993, Docket: RS92- 60-016, Status: Effective
1st Rev Sub Original Sheet No. 240G 1st Rev Sub Original Sheet No. 240G : Superseded
TRANSPORTATION GENERAL TERMS AND CONDITIONS
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.11 Resolution of Imbalances (Continued)
(g) Netting of Contracts - For purposes of resolving an
imbalance with a Shipper, El Paso is willing to
negotiate, on a non-discriminatory basis, netting of gas
imbalances, adjusted to reflect a common point at which
the imbalance is held, between contracts with such
Shipper pursuant to the following conditions:
(i) Netting between downstream interconnect and mainline
agreement imbalances is negotiable if the agreement
has the interconnect point as a delivery point.
(ii) Netting between mainline agreement imbalances (for
similar transportation service) is negotiable.
(iii) Netting between gathering/pooling and mainline
agreements is negotiable if the gathering/pooling
basin is a receipt point on the mainline agreement.
For any specific situation not discussed above, El Paso
is willing to negotiate a transportation transaction
which could have the effect of netting imbalances.
20.12 Unauthorized Overpull Penalty
(a) A penalty shall be levied by El Paso and paid in dollars
by any receiving party (any Shipper, Local Distribution
Company, Direct Sales Customer or other party who
operates the facilities that receive the gas transported
by El Paso) who exceeds the limits specified below. Such
penalty is applicable when, in times of capacity
constraints, or when, due to unforeseen circumstances
beyond El Paso's control, El Paso has determined that is
ability to maintain scheduled deliveries to all receiving
parties is materially threatened due to insufficient
pressures in El Paso's system and El Paso so notifies
said receiving parties. Nothing herein shall limit
El Paso's right to take any further actions required to
maintain the integrity of its system operations.