SIT RATE SCHEDULE
STORAGE IN TRANSIT (Cont'd)
3. CALCULATING BALANCING QUANTITIES AND RELATED PENALTIES
(a) For each Day on which Shipper receives service from Transporter under this Rate Schedule,
Transporter shall calculate for Shipper an Undertendered Balance Quantity (UBQ) or an Overtendered Balance
Quantity (OBQ). If the actual daily delivery quantity under those Transportation Service Agreements
designated by Shipper for SIT service exceeds the actual daily receipt quantity (less Retainage assessed under
the applicable Transportation Service Agreement(s) under those Service Agreements, the difference shall
constitute Shipper's UBQ for that Day. If the actual daily delivery quantity under those Transportation
Service Agreements designated by Shipper for SIT service is less than the actual daily receipt quantity (less
Retainage assessed under the applicable Transportation Service Agreement(s)) under those Service Agreements,
the difference shall constitute Shipper's OBQ for that Day. Transporter shall maintain an account in which
Transporter shall separately record Shipper's UBQs and OBQs on a daily basis. Shipper shall be billed a
commodity charge, as described in Section 5 below, on the daily change, if any, in Shipper's UBQ or OBQ.
(b) The running net balance of Shipper's UBQs and OBQs shall be Shipper's Imbalance Quantity.
Twice during any 30-day period, Shipper shall be required to (i) eliminate any existing Imbalance Quantity,
(ii) convert any outstanding UBQ to an OBQ, or (iii) convert any outstanding OBQ to a UBQ. Maintaining an
Imbalance Quantity of zero for two or more consecutive days within a 30-day period will satisfy this
requirement. For each 30-day period during which Shipper fails to satisfy this requirement, Shipper shall pay
Transporter a penalty of $0.25 per Dth of its existing Imbalance Quantity for each day at the end of such 30-
day period in which Shipper fails to satisfy the requirements specified in (i), (ii) or (iii) immediately
above. If there is an interruption of Shipper's service under this Rate Schedule, Transporter will waive the
requirement that the foregoing requirements specified in (i), (ii) or (iii) immediately above be accomplished
within a 30-day period. For each day of interruption, one corresponding day will be added to the 30-day time
period.
(c) If Shipper's SIT Service Agreement is terminated and Shipper has an OBQ that is not corrected
within 60 days of such termination, the quantities underlying that OBQ shall be forfeited to Transporter free
and clear of all liens and encumbrances. Transporter shall post such forfeited quantities on its EBB as gas
available for sale to the highest bidder within a 24 hour notice period. Such posting may provide as a
condition of sale that such gas be withdrawn from storage within a period of time to be specified in the
notice. Upon receipt of payment, Transporter shall treat the forfeited gas proceeds as Penalty Revenues as
defined in Section 19.6 of the General Terms and Conditions.
(d) If Shipper's SIT Service Agreement is terminated and Shipper has a UBQ that is not corrected
within 60 days of such termination, Shipper shall be assessed and billed a penalty for the quantities
comprising such UBQ, grossed up for the Retainage percentages applicable to Transporter's ITS Rate Schedule.
The penalty shall be 120 percent of the Spot Market Price for the Month during which such quantities are made
up by Transporter. For purposes of this Rate Schedule, "Spot Market Price" shall mean, for the applicable
Month, the contract index price for gas delivered to "Columbia Gas Transmission, LLC, Appalachia", as reported
in Inside FERC's Gas Market Report or successor publication.
(e) With respect to penalties imposed pursuant to Section 3(d) above, and for purposes of
calculating Penalty Revenues pursuant to Section 19.6 of the General Terms and Conditions, any amount above
100 percent of the Spot Market Price, net of Transporter's costs, will be treated as a penalty revenue to be
credited to non-offending Shippers.
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Issued by: Claire A. Burum, SVP Regulatory Affairs
Issued on: June 19, 2009 Effective on: July 20, 2009
Filed to comply with order of the Federal Energy Regulatory Commission, Docket
No. RP08-295-000, issued May 21, 2009, 27 FERC ¶ 61,149 |