Common use of BALANCING PROCEDURES Clause in Contracts

BALANCING PROCEDURES. 5.1. Processing Customer will inform AUM of the amount of Gas to be delivered by Processing Customer at the Plant Receipt Point and of Processing Customer’s nomination for Residue Gas to be delivered at the Redelivery Point, in accordance with the nomination procedures described above, as same may be amended from time to time. In the event that Processing Customer does not, on a daily basis, arrange for the transportation and disposition of its Residue Gas at the Redelivery Point, or if Processing Customer nominates Residue Gas volumes in a greater or lesser amount than Processing Customer’s Residue Gas at the Redelivery Point, then a condition of imbalance shall exist. A “Positive Imbalance” is the volume by which Processing Customer’s Residue Gas exceeds the confirmed nominated pipeline Residue Gas volume disposed of by Processing Customer or the authorized agent of Processing Customer. A “Negative Imbalance” is the volume by which Processing Customer’s Residue Gas is less than the confirmed nominated pipeline Residue Gas volume disposed of by Processing Customer or the authorized agent of Processing Customer. AUM and Processing Customer shall work to minimize any imbalance and agree to exchange pertinent information in writing in good faith in an attempt to minimize the imbalance. As soon as practicable AUM shall provide Processing Customer written notice that Processing Customer has a condition of imbalance during any Accounting Period, and Processing Customer shall take immediate corrective action to conform Processing Customer’s nominations to Processing Customer’s physical flows adjusted for relief of existing imbalance, if requested by AUM. Imbalance adjustments may be limited by the downstream pipeline’s acceptance of such adjustments.

BALANCING PROCEDURES. 5.1. Processing Customer Producer will inform AUM Processor of the amount of Gas to be delivered by Processing Customer Producer at the Plant each Receipt Point and of Processing CustomerProducer’s nomination for Residue Gas to be delivered at the Redelivery Point, in accordance with the nomination procedures described above, as same may be amended from time to time. In the event that Processing Customer Producer does not, on a daily basis, arrange for the sale, transportation and disposition of its Residue Gas at the Redelivery Point, or if Processing Customer Producer nominates Residue for sale Gas volumes in a greater or lesser amount than Processing CustomerProducer’s Residue share of the Gas at the Redelivery Point, then a condition of imbalance shall exist. A “Positive Imbalance” is the volume by which Processing CustomerProducer’s Residue share of the Gas exceeds allocated pursuant to this Agreement is in excess of the confirmed nominated pipeline Residue Gas volume sales volumes disposed of by Processing Customer Producer or the authorized agent of Processing CustomerProducer’s designee. A “Negative Imbalance” is the volume by which Processing CustomerProducer’s Residue share of the Gas allocated pursuant to this Agreement is less than the confirmed nominated pipeline Residue Gas volume sales volumes disposed of by Processing Customer Producer or the authorized agent of Processing CustomerProducer’s designee. AUM Processor and Processing Customer Producer shall work to minimize any imbalance and agree to exchange pertinent information in writing in good faith in an attempt to minimize the imbalance. As soon as practicable AUM Processor shall provide Processing Customer Producer written notice that Processing Customer Producer has a condition of imbalance during any Accounting Period, and Processing Customer Producer shall take immediate corrective action to conform Processing CustomerProducer’s nominations to Processing CustomerProducer’s physical flows adjusted for relief of existing imbalance, if requested by AUMProcessor. Imbalance adjustments may be limited by the downstream pipeline’s acceptance of such adjustments.