Common use of Cash Out Balancing Clause in Contracts

Cash Out Balancing. All Imbalances on a Super-System (or a single System not part of a Super-System) not covered by Sections 7.2.1 or 7.2.2 above will be resolved as follows: (a) if there is a Negative Imbalance, Shipper will pay Gatherer on a monthly basis an amount equal to the volume of the Negative Imbalance on such Super-System (or a single System not part of a Super-System) multiplied by the Cash Out Price (as hereinafter defined); and (b) if there is a Positive Imbalance, Gatherer will pay Shipper on a monthly basis an amount equal to the volume of the Positive Imbalance on such Super-System (or a single System not part of a Super-System) multiplied by the Cash Out Price. The “Cash Out Price” for each applicable Super System (or single System that is not part of a Super System) will be the average daily index price, during the month in which the applicable Imbalance occurs, for Dominion South Point in the section “Prices of Spot Gas delivered to Pipelines” as published in Inside FERC’s Gas Market Report, as adjusted as set forth below. If for any reason such index ceases to be published or if for any reason such index is no longer applicable to such Super-System or System, Gatherer and Shipper will mutually agree upon an appropriate replacement index and if no agreement can be reached, the provisions of Section 18 will apply. If any downstream pipeline on a Super-System or System charges a penalty to Gatherer as a result of an imbalance on such Super-System or System in any Month, then Gatherer may adjust the Cash Out Price for such Month as set forth in the tables below based on the percentage that the volume of Shipper’s Imbalance is of Shipper’s total Gas deliveries. Settlement price for Negative Imbalances % Imbalance % of Cash Out Price 5% or less 100 % More than 5%, less than or equal to 10% 115 % More than 10%, less than or equal to 15% 130 % More than 15%, less than or equal to 20% 140 % More than 20% 150 % Settlement price for Positive Imbalances % Imbalance % of Cash Out Price 5% or less 100 % More than 5%, less than or equal to 10% 85 % More than 10%, less than or equal to 15% 70 % More than 15%, less than or equal to 20% 60 % More than 20% 50 %

Appears in 4 contracts

Samples: Anchor Shipper Gas Gathering Agreement for Northern Pennsylvania (Epsilon Energy Ltd.), Anchor Shipper Gas Gathering Agreement for Northern Pennsylvania (Epsilon Energy Ltd.), Anchor Shipper Gas Gathering Agreement for Northern Pennsylvania (Epsilon Energy Ltd.)

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Cash Out Balancing. All Imbalances on a Super-System (or a single System not part of a Super-System) not covered by Sections 7.2.1 6.2.1 or 7.2.2 6.2.2 above will be resolved as follows: (a) if there is a Negative Imbalance, Shipper will pay Gatherer on a monthly basis an amount equal to the volume of the Negative Imbalance on such Super-System (or a single System not part of a Super-System) multiplied by the Cash Out Price (as hereinafter defined); and (b) if there is a Positive Imbalance, Gatherer will pay Shipper on a monthly basis an amount equal to the volume of the Positive Imbalance on such Super-System (or a single System not part of a Super-System) multiplied by the Cash Out Price. The “Cash Out Price” for each applicable Super System (or single System that is not part of a Super System) will be the average daily index price, during the month in which the applicable Imbalance occurs, for Dominion South Point in the section “Prices of Spot Gas delivered to Pipelines” as published in Inside FERC’s Gas Market Report, as adjusted as set forth below. If for any reason such index ceases to be published or if for any reason such index is no longer applicable to such Super-System or System, Gatherer and Shipper will mutually agree upon an appropriate replacement index and if no agreement can be reached, the provisions of Section 18 17 will apply. If any downstream pipeline on a Super-System or System charges a penalty to Gatherer as a result of an imbalance on such Super-System or System in any Month, then Gatherer may adjust the Cash Out Price for such Month as set forth in the tables below based on the percentage that the volume of Shipper’s Imbalance is of Shipper’s total Gas deliveries. Settlement price for Negative Imbalances % Imbalance % of Cash Out Price 5% or less 100 % More than 5%, less than or equal to 10% 115 % More than 10%, less than or equal to 15% 130 % More than 15%, less than or equal to 20% 140 % More than 20% 150 % Settlement price for Positive Imbalances % Imbalance % of Cash Out Price 5% or less 100 % More than 5%, less than or equal to 10% 85 % More than 10%, less than or equal to 15% 70 % More than 15%, less than or equal to 20% 60 % More than 20% 50 %

Appears in 3 contracts

Samples: Gas Gathering Agreement (Epsilon Energy Ltd.), Gas Gathering Agreement (Epsilon Energy Ltd.), Gas Gathering Agreement (Epsilon Energy Ltd.)

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