Arkansas Western Pipeline Company

First Revised Volume No. 1

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Effective Date: 12/01/1993, Docket: CP92-570-005, Status: Effective

Original Sheet No. 53 Original Sheet No. 53 : Superseded




replacement cost shall not be higher than one hundred

twenty-five percent (125%) of the most recent spot

market average price for natural gas delivered to Arkla

Energy Resources' transmission facilities as is

reported by Gas Daily, plus all costs incurred to

transport the gas to Transporter. If, after the

balancing period, Transporter determines that Shipper

received from Transporter quantities that were less

than the quantities delivered to Transporter by Shipper

at the Receipt Point(s), Transporter shall, at its

option, retain such over-deliveries at the Receipt

Point(s) free and clear of any adverse claims of any

party or, shall charge Shipper a penalty equal to

$2.00/Dth multiplied by the excess quantity.

Transporter has the right to remove excess gas from its

system in any manner deemed appropriate; provided

however, that Transporter will select methods to remove

such excess gas on a non-discriminatory basis;

provided, further, that for the final month of service

Transporter shall not charge a Shipper an imbalance

penalty under both subsection (a) and (c) of this



6.8 Transporter agrees that, if requested by a Shipper, it will

negotiate with an entity that operates the facilities

interconnecting with Transporter at a Receipt Point or

Delivery Point (Balance Operator) in a good faith effort to

reach an agreement to deal with imbalances at the Receipt

Points or Delivery Points specified, subject to the

following conditions:


a. Such agreement must set out a mutually agreeable

procedure for dealing, as between Transporter and

Balance Operator, with any difference between confirmed

nominations and actual physical gas flow caused by

operational conditions, so that any such discrepancy

does not affect any Shipper;


b. The Balance Operator must meet the same

creditworthiness standards as Shipper;


c. Transporter and Balance Operator must not have

previously entered into such agreement which was

terminated because of Balance Operator's failure to

perform. Nothing herein is intended to restrict

Transporter's right to terminate in accordance with its

terms any agreement entered into hereunder, including