Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 12/14/2006, Docket: RP07- 64-000, Status: Effective

Third Revised Sheet No. 264 Third Revised Sheet No. 264 : Effective

Superseding: Second Revised Sheet No. 264




11. BALANCING (continued)


(b)Imbalance Due Cash-out Party. For contract imbalances,

after minimization in accordance with the Imbalance Netting

provisions in Section 11.5 herein, where actual receipts at

the Point(s) of Receipt less Fuel Retainage Quantity exceed

actual deliveries, Pipeline shall purchase from Cash-out

Party such excess receipts. Pipeline shall pay Cash-Out

Party based on the accumulated sum of the results of the

formulas listed below:



Level Factor Results


0% - < 5% 1.00 (price x quantity < 5%)

> 5% - <10% .90 (price x quantity > 5% & <10%)

>10% - <15% .80 (price X quantity >10% & <15%)

>15% - <20% .70 (price x quantity >15% & <20%)

>20% - <25% .60 (price x quantity >20% & <25%)

>25% .50 (price x quantity >25%)


The amount due Cash-out Party for each imbalance level shall be

determined by multiplying the corresponding imbalance level

factor by the Index Price, as determined in Section 11.6(c)

herein, for the Month in which the contract imbalance was

incurred times the quantity within each imbalance level. The

calculation of the amount due Cash-out Party relating to excess

quantities shall also include a transportation imbalance credit,

which shall be calculated by multiplying the excess quantities by

the actual weighted average Usage Charge owed on all quantities

of Gas delivered during the Month to that Cash-out Party.

Pipeline shall have no responsibility for the distribution of

funds beyond the initial distribution to the Cash-out Party.