Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 06/01/2003, Docket: RP00-329-004, Status: Effective

Substitute Third Revised Sheet No. 11A Substitute Third Revised Sheet No. 11A : Effective

Superseding: Second Revised Sheet No. 11A







3.3 Imbalances and Penalties (continued)


(a) Accumulated Imbalances: If Shipper fails to maintain a balance of receipts and deliveries and

such failure is not the result of force majeure as specified in Section 10 of these General

Terms and Conditions, Transporter may impose an imbalance penalty only to the extent that

Transporter's ability to maintain reliable service was impaired. No imbalance penalty shall be

assessed until Transporter has notified Shipper that an imbalance exists and Shipper has failed

to take corrective action acceptable to Transporter.


1. For purposes of this provision, an "Accumulated Imbalance Quantity" shall mean the

cumulative difference between actual month-end receipts and deliveries as posted on

Transporter's web site under the Service Agreement since the date of initial service;

"Tolerance Level" shall mean the greater of 2,000 Dth or five percent (5%) of the total

quantity of gas delivered by Transporter to Shipper during any Month; and "Imbalance

Penalty Quantity" shall mean that portion of the Accumulated Imbalance Quantity in excess

of the Tolerance Level which threatens to impair reliable service.


An imbalance penalty shall be levied by Transporter against any Shipper who has not reduced

the Accumulated Imbalance Quantity to within the Tolerance Level by the sixtieth (60th) Day

following notification of the imbalance (make-up period), but only to the extent that such

imbalance impaired reliable service (Imbalance Penalty Quantity). Any additional net

imbalances incurred during the make-up period will be subject to a separate make-up period.


At the end of any make-up period, if Shipper shall have an Accumulated Imbalance

Quantity,regardless of whether this quantity is an overdelivery or an underdelivery of gas,

which is in excess of the Tolerance Level, Transporter shall apply an imbalance penalty

upon the Imbalance Penalty Quantity equal to twice the price indicated for Canadian Natural

Gas Spot Export Prices as reported by Natural Gas Market Report for the Emerson, MB/Noyes,

MN Canadian Export/U.S. entry point. The issue of this publication shall be the most

recently available edition at the time of invoicing. (Natural Gas Market Report is

published twice a month by Canadian Enerdata Ltd., Suite 500, 7030 Woodbine Ave., Markham,

Ontario, Canada L3R 1A2.) Any such assessed penalty shall be paid to Transporter by Shipper

in dollars (U.S.).


Once a penalty has been assessed the Imbalance Penalty Quantity is corrected. Imbalance

Penalty Quantities for which a penalty has been paid shall be removed from the Accumulated

Imbalance Quantity.


The netting and trading of imbalances is permitted pursuant to Section 3.9 of the General

Terms and Conditions of this FERC Gas Tariff, Second Revised Volume No. 1. Nothing herein

shall limit Transporter's right to take actions of whatever nature as may be required to

correct imbalances which threaten the integrity of its system, including maintenance of

service to other customers.


2. The imbalance penalty provided for hereunder shall not apply in the event of the occurrence

of any event of force majeure as defined in Section 10 of the General Terms and Conditions

or of an event of curtailment on the Transporter's System as defined in Section 11 of the

General Terms and Conditions of this Tariff.