Great Lakes Gas Transport, L.L.C.

Second Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RP97-157-006, Status: Effective

Original Sheet No. 131 Original Sheet No. 131 : Effective










13.2 Operational Balancing Agreements


(a) Any imbalances arising under any transportation agreement between

Shipper and Transporter that are attributable to variances (1)

between actual receipts of natural gas and scheduled receipts of

natural gas at receipt points into Transporter's system, or (2)

between actual deliveries of natural gas and scheduled deliveries

of natural gas at delivery points from Transporter's system,

which receipt and/or delivery points are subject to Operational

Balancing Agreements ("OBA's"), as more fully described in

Subsection (b) hereof, on the day or days such variances arise,

will be resolved by Transporter pursuant to the terms of the

applicable OBA and Shipper shall not be subject to any imbalance

charges or penalties pursuant to its service agreements with

Transporter for such imbalances.


(b) For the purpose of minimizing operational conflicts between

various pipeline facilities with respect to the delivery of gas

to and from Transporter's facilities, Transporter is willing to

negotiate and execute OBA's with parties that operate natural gas

facilities which interconnect with Transporter's system and which

are not among parties described in Section 13.2(c)(i)-(iv) hereof

(herein called the OBA Party). Transporter is also willing to

negotiate with any other party which does not qualify to be an

OBA party as defined above, toward an Operational Balancing

Agreement which would provide Transporter with assurances

equivalent to those contained in the above definition of an OBA

party. Such OBA's shall specify the gas custody transfer

procedures to be followed by Transporter and the OBA Party for

the scheduling of quantities to be received by Transporter at

receipt points and delivered by Transporter at delivery points.

Such OBA's will provide that any variance between actual

quantities and scheduled quantities for any day shall be resolved

in-kind promptly pursuant to the terms of the OBA. To facilitate

such determination of variances on a timely basis, Transporter

and the OBA Party will agree in the OBA on necessary and timely

measurement, reporting and accounting procedures. Transporter

shall post on the Bulletin Board System those receipt and

delivery points which are subject to an OBA.