04-A TXU Gas Statmt of Intent - Laserfiche WebLink

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TARIFF FOR GAS SERVICE TXU GAS COMPANY RATE SCHEDULE: 31 I General Transportation Contract Terms and Conditions PLICABLE TO: Entire System DATE:REVISION: 0 appticabte Transportation Agreement for such Day and such interruption of serwce will not prevent enforcement by Company of any other qf its legal rights or remedies, including imbalance resorutions, nor be construed as a breach of Company's obligations under any Transportation Agreement If Customer fails to nominate quantities for three consecutive Months during the term of any Transportation Agreement, then Company, upon 30 Days' pnor written notice to Customer, may term,nate the applicable Transportation Agreement; provided, however, the obligation to make payment for mon~es due ur~der such Transportation Agreement will not be extinguished. Company at any time and from t~me to time and for any specified or unspecified time period(s), may for operational reasons prorate and/or totally refuse to accept new nominations or honor then existing nominations at certain then existing Rece=pt Point(s); however, Company will endeavor to notify Customer or Customer's Designee of such refusal as soon as practicable, but Company will not be liable for any failure to do so. Notwithstanding the foregoing, Customer will not attempt to utilize the nomination process set forth above to reserve or gain additional p~peline capacity by over nomination, and in the event Company, in its reasonable discretion, determines that Customer has attempted to do so, then Company will have the right, with or without prior nobce, to: ti) revise the nomination; or (ii) suspend service under the applicable Transportation Agreement. (b) If Customer fails to furnish transportation nominations as required herein for any month during the term of the applicable Transportation Agreement, and Customer receives Gas from Company at the Delivery Point(s), then Company may charge Customer for each Day that Customer does not have a confirmed nomination in place, 150% of difference ~n the highest and lowest "midpoint" price for the Katy point listed in Plat'ts Gas Daily in the table entitled "Daily Price Survey" for the applicable Month. If Customer fails to furnish transportation nominations as required herein for any Day or Month, then Customer's transportation nomination for such Day or Month will be deemed to be zero MlvIBtu 5. Imbalances (a) Customer's Balancing Obligations. Customer will balance, on a simultaneous basis, between the quantities of Gas received by Company at the Receipt Point(s), less the Retention Volumes and Make-up Volumes, and the quantities of Gas delivered at the Detivery Point(s). An imbalance will exist under any Transportation Agreement when, during any designated time period during the term thereof, there ~s a numerical difference between the quantity of Gas delivered by Company to Customer at the Delivery Point and the quantity of Gas received by Company from Customer (or Customer's Designee) at the Receipt Point(s), exclusive of Retention Volumes and Make-up Volumes. Customer wilt be solely responsible to monitor actual deliveries and receipts under each Transportation Agreement. Customer must adjust its nominations, deliveries, and receipts to maintain a simultaneous balance between the quantities of Gas received at the Receipt Point(s) and the quantities of Gas delivered at the Delivery Point(s), and must notify Company of any imbalances or situations that may cause imbalances If Company is unable to receive Gas at any Receipt Point in the quantities nominated, or deliver Gas at any Delivery Point in the quantities nominated, as provided for herein, Company will notify Customer as soon as reasonably practicable. (b) Company will have no obligation, during any designated time period during the term of any Transportation Agreement, to deliver Gas to Customer under the applicable Transportation Agreement in excess of the quantity received by Company at the applicable Receipt Point(s), less Retention Volumes, nor will Company have any obligation, during any designated time period during the term of any Transportation Agreement, to receive from Customer at the applicable Receipt Point(s) quantities of Gas under any Transportation Agreement that exceed the quantities of Gas delivered by Company to Customer under such Transportation Agreement, plus applicable Retention Volumes. (c) Imbalance Charges. In the event of an imbalance under any Transportation Agreement. Company may charge Customer the applicable imbalance charges specified in the Rate Schedules applicable to the type of service provided by Company. (d) Operational Flow Orders. Upon at least one hour prior notification by Company that operational conditions exist on Company's system that, in Company's sole open,on, may adversely affect -80-