GENERAL TERMS AND CONDITIONS

(continued)


 


 

(c) In prioritizing nominations on each segment of Pipeline's

system, Pipeline shall give backhaul transportation

nominations secondary priority for purposes of this Section

6.6, and Pipeline shall net backhaul nomination against

nominations for forward haul service in determining

available segment capacity, unless Pipeline has reason to

believe that the backhaul transportation service will not be

performed on a continuous basis throughout the Gas Day.


 


 

7. OPERATIONAL BALANCING AGREEMENTS, DETERMINATION OF RECEIPTS AND DELIVERIES,

ALLOWABLE DAILY DISPATCHING VARIATIONS, OVERRUN PENALTIES AND SCHEDULING

PENALTIES


 

7.1 Operational Balancing Agreements ("OBA")


 

(a) For the purpose of minimizing operational conflicts

between various pipeline facilities with respect to the

delivery of gas to and from Pipeline's facilities,

Pipeline may enter into OBAs with interstate, intrastate

pipelines, or LNG terminals that operate natural gas

facilities that directly interconnect with Pipeline's

system (herein called "OBA Party"). Such OBA shall

specify the gas custody transfer procedures to be

followed by Pipeline and OBA Party for the confirmation

of scheduled quantities of gas to be received by

Pipeline at the Receipt Point or delivered by Pipeline

at the Delivery Point. Such OBA will provide that any

variance between actual quantities and scheduled and

confirmed quantities at the point where the OBA is in

place for any Gas Day shall be cashed out or resolved

in-kind promptly pursuant to the terms of the OBA and

that such daily scheduling and monthly balancing

variances are the responsibility of the OBA Party.