U S G Pipeline Company


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Effective Date: 04/01/2000, Docket: CP99-211-001, Status: Effective

Original Sheet No. 50 Original Sheet No. 50 : Effective




(2) Negative Imbalances

In the event of a Negative Imbalance (i.e., when actual

deliveries are less than scheduled quantities),

Transporter will pay Shipper for such Negative Imbalance

Quantity in accordance with the following provisions:


(i) Such payments will be based on the Purchase Index

Price multiplied by one of the following factors:


Imbalance Level Factor

0% - 5% 0.95

Greater than 5% - 10% 0.90

Greater than 10% 0.80


Imbalance Level shall be calculated by dividing the

Negative Imbalance Quantity by the sum of the total

quantities scheduled for delivery.


For Negative Imbalances, the Purchase Index Price

shall equal the lowest of the daily spot prices for

gas delivered during the month at Tennessee 500 Leg

as reported in Gas Daily. In the event that this

price is no longer available or the basis upon

which such price is reported or calculated in such

publication changes substantively, Transporter will

file to change its tariff and may, at its

discretion, select representative price(s) in the

interim period, subject to Commission approval.


(ii) The amount due Shipper for Negative Imbalances

shall be the Negative Imbalance Quantity multiplied

by the product of the corresponding Imbalance Level

Factor multiplied by the Purchase Index Price.