Common use of Balancing Clause in Contracts

Balancing. Any monthly imbalance between nominations and actuals shall be accounted for and administered in accordance with the following Terms and Conditions: Gatherer and Shipper intend that the quantities of Gas actually delivered and received each Day under the Agreement will equal the confirmed nominations. Any difference between the aggregate quantity of Gas nominated and the aggregate quantity of Gas actually delivered on any given Day shall constitute the “Daily Operational Imbalance”. During any given month, operational metered quantities (MMBtu’s) shall be used by Gatherer on a daily basis, as available, to determine the Daily Operational Imbalance, if any, for any given Day. Upon notification by Gatherer, Shipper shall promptly make, or cause to be made, such physical flow adjustments as may be necessary in order to prevent, reduce, or eliminate any Daily Operational Imbalance. The sum of the Daily Operational Imbalances for each Day in a given Month shall constitute the “Monthly Operational Imbalance” for such Month. The actual Monthly Operational Imbalance shall be communicated by Gatherer to Shipper in writing as soon as possible, but in no case later than the twentieth (20th) Day of the Month following the Month in which the Monthly Operational Imbalance occurred. Deliveries of Gas to correct actual Monthly Operational Imbalances shall be nominated in the next Month’s nominations and may be made through the normal nomination procedures as set out in the Agreement, as such may be in effect from time to time, or as may otherwise be mutually agreed to by Gatherer and Shipper. Any Monthly Operational Imbalance Gatherer and Shipper have not eliminated by the end of the Month following the Month in which the Monthly Operational Imbalance occurred shall be “cashed-out” as follows: