U-T Offshore System, L.L.C.
Third Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective
Second Revised Sheet No. 50 Second Revised Sheet No. 50 : Superseded
Superseding: First Revised Sheet No. 50
GENERAL TERMS AND CONDITIONS
(d) The netting of imbalances does not relieve Shipper of the obligation to
pay all transportation charges for the quantity of gas actually delivered
to Shipper during the month.
(e) Nothing contained in this subsection 8.2 shall require U-TOS to incur a
financial loss as a result of netting excess receipts and excess
deliveries or to continue such netting, if doing so would be inconsistent
with the prudent operation of U-TOS' pipeline system.
8.3 Cashout Procedures. Any imbalance remaining will be cashed out on a tiered
basis pursuant to the following schedule:
IMBALANCE LEVEL (U-TOS Pays Shipper) (Shipper Pays U-TOS)
--------------- -------------------- --------------------
0% to 5% 100% x AMIP 100% x AMIP
5% to 10% 90% x AMIP 110% x AMIP
10% to 15% 80% x AMIP 120% x AMIP
15% to 20% 70% x AMIP 130% x AMIP
Greater than 20% 60% x AMIP 140% x AMIP
(a) A Shipper's remaining imbalance will be cashed out based on the percentage
of that imbalance compared to the total deliveries for that Shipper during
the month. For example, if the Total Deliveries were 1,000 Dth and the
remaining underage imbalance was 100 Dth, the total Imbalance Level would
be 10%. The first 5% (50 Dth) would be cashed out at 100% of the AMIP and
the remaining 50 Dth would be cashed out at 110% of the AMIP.
(b) The Average Monthly Index Price (AMIP) is the arithmetic average of the
Weekly Index Prices (WIPs). The WIP for any week is the arithmetic
average of the following two index prices reported in "Gas Price Report"
issued by "Natural Gas Week":
(1) Louisiana, Gulf Coast, Onshore, Spot Delivered to Pipeline; and
(2) Louisiana, Gulf Coast, Offshore, Spot Delivered to Pipeline.
In calculating the AMIP, the WIPs will be based on the prices reported in
the issue of "Natural Gas Week" dated on or after U-TOS' nomination
deadline for first of the month service for that month, and the subsequent
issues dated prior to U-TOS nomination deadline for the following month's
first of the month service.
(c) Shippers with remaining imbalances shall pay U-TOS or will be credited
with the appropriate cashout amounts.