Tennessee Gas Pipeline Company


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Effective Date: 03/24/2004, Docket: RP02-114-005, Status: Effective

Seventh Revised Sheet No. 209A Seventh Revised Sheet No. 209A : Effective

Superseding: Fifth Revised Sheet No. 209A



Schedule LMS - MA

Load Management Service - Market Area (continued)



(ii) Operational Transactions: Operational Transactions are those

Operational Purchases and Operational Sales which Transporter may

from time to time, in its discretion, enter into with third

parties to balance Transporter's system and to maintain

operational integrity. Pursuant to this Section 7(g)(ii),

Transporter may purchase gas quantities for receipt into its

system and may sell gas quantities for delivery out of its system.

These Operational Transactions may be conducted on a first-

come/first-served basis at posted prices, or pursuant to an open

auction or electronic gas trading system, or negotiated directly

with third parties.


The Operational Transactions utilized to reconcile Net Cashout

Activity pursuant to Section 7(g)(i) Item No. 2 of this Rate

Schedule must occur during the Annual Cashout Period; provided,

however, that if the quantity of Operational Purchases or

Operational Sales, as applicable, is insufficient to offset the

quantity of Net Cashout Activity, then an additional month of

Operational Transactions, ending on September 30, thirteen months

after the start of the Annual Cashout Period, shall be included in

the Cashout Report in order to reconcile Net Cashout Activity.

Gas quantities from an Operational Transaction which are used to

offset Net Cashout Activity in one Cashout Report cannot be used

to offset cashout activity in a subsequent Cashout Report.


(iii) Annual Cashout Report: Transporter shall include in the Cashout

Reports filed pursuant to this Section 7(g) monthly detail for

Item Nos. 1, 4 and 5 as described in Section 7 (g)(i). Such

detail shall include a listing of monthly imbalances in dekatherms

and dollars by cashout shipper in support of the cashout activity

in the report. Transporter will include a list in the Cashout

Report of all Operational Purchases and Operational Sales

transactions by month during the applicable Annual Cashout Period,

plus the additional month provided pursuant to Section 7(g)(ii),

if applicable, and will show the derivation of the weighted

average price of the Operational Transactions utilized to

reconcile Net Cashout Activity for the Annual Cashout Period as

described in Item No. 2 in Section 7(g)(i). In addition,

Transporter shall include in the Cashout Report detailed support

for any required Balancing Entry, Balancing Entry Pricing and

Balancing Entry Pricing Adjustment pursuant to Item No. 3 of

Section 7(g)(i) of this Rate Schedule.


To the extent that the Net Cashout Balance in any Annual Cashout

Period results in a positive balance, Transporter shall refund

such balance to shippers and OBA point operators subject to the

cashout provisions of Rate Schedules LMS-MA and LMS-PA.