Common use of Daily Balancing Clause in Contracts

Daily Balancing. Each Day Shipper shall cause the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) to equal as closely as practicable Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink. Whenever the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) is insufficient to support Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink, Shipper shall promptly increase its Daily delivery such that the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) equals as closely as practicable Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink. Whenever the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) exceeds Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink, Shipper shall promptly reduce its Daily delivery such that the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) equals as closely as practicable Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink. If Shipper does not promptly reduce its Daily delivery, LMM may cause such reduction in Shipper’s Daily delivery at whichever Receipt Point(s) LMM deems appropriate. Notwithstanding the foregoing, Shipper may request in writing the right to create a Daily Imbalance when necessary to counteract a prior Daily Imbalance. Whether such request will be granted is within the sole discretion of LMM.

Daily Balancing. Each Day Shipper shall cause the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) to equal as closely as practicable Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink. Whenever the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) is insufficient to support Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink, Shipper shall promptly increase its Daily delivery such that the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) equals as closely as practicable Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink. Whenever the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) exceeds Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink, Shipper shall promptly reduce its Daily delivery such that the number of Dth of Shipper’s Gas being delivered at the Receipt Point(s) equals as closely as practicable Shipper’s Scheduled Nomination(s) plus Gathering Fuel and any Plant Fuel and Shrink. If Shipper does not promptly reduce its Daily delivery, LMM may cause such reduction in Shipper’s Daily delivery at whichever Receipt Point(s) LMM deems appropriate. Notwithstanding the foregoing, Shipper may request in writing the right to create a Daily Imbalance when necessary to counteract a prior Daily Imbalance. Whether such request will be granted is within the sole discretion of LMM. F.3 Monthly Balancing. If the cumulative Imbalance reflected on the Monthly statement submitted to Shipper pursuant to Section 5.2 is greater than Shipper’s Scheduled Nomination(s) during the statement period, then Shipper shall Balance with LMM by reducing the Imbalance gas closely as practicable to zero (0) during the Month following the delivery of such statement (“Balancing Period”) in the manner described in (a) or (b) below. LMM shall advise Shipper of the number of Dth of Gas which must be nominated or nominated and produced by Shipper for each Day during the Balancing Period in order to Balance (“Daily Balance Gas”). Shipper shall not submit Daily nominations during the Balancing Period whose total exceeds the MDQ unless LMM otherwise consents in writing. Shipper’s nomination of Daily Balance Gas shall receive the highest priority of Shipper’s nominations. (a) When a Positive Imbalance exists, Shipper shall include in its Daily nominations during the Balancing Period a nomination of Daily Balance Gas, specifically designated as such, and Shipper shall deliver sufficient Gas to fulfill its Daily nominations. (b) When a Negative Imbalance exists, Shipper shall include in its Daily nominations during the Balancing Period a nomination of Daily Balance Gas, specifically designated as such, but Shipper shall only deliver sufficient Gas to fulfill its Daily nominations less the Daily Balance Gas nomination. Both parties recognize that LMM’s ability to schedule Daily Balance Gas according to (a) and (b) above is dependent upon the cooperation of third parties. If on any given Day during the Balancing Period the cooperation of third parties is not forthcoming, the Balancing Period shall be extended one (1) Day to account for the lost Day. Notwithstanding the foregoing, LMM may, at its discretion, postpone Shipper’s obligation to Balance.

Daily Balancing. Each Day Shipper shall cause the number of Dth MMBtus of Shipper’s Gas being delivered at the Receipt Point(s) to equal as closely as practicable Shipper’s Scheduled Confirmed Nomination(s) plus Gathering Fuel and any Fuel, Basic Processing Plant Fuel Fuel, Cryogenic Processing Plant Fuel, and Shrink. Whenever the number of Dth MMBtus of Shipper’s Gas being delivered at the Receipt Point(s) is insufficient to support Shipper’s Scheduled Confirmed Nomination(s) plus Gathering Fuel and any Fuel, Basic Processing Plant Fuel Fuel, Cryogenic Processing Plant Fuel, and Shrink, Shipper shall promptly increase its Daily delivery such that the number of Dth MMBtus of Shipper’s Gas being delivered at the Receipt Point(s) equals as closely as practicable Shipper’s Scheduled Confirmed Nomination(s) plus Gathering Fuel and any Fuel, Basic Processing Plant Fuel Fuel, Cryogenic Processing Plant Fuel, and Shrink. Whenever the number of Dth MMBtus of Shipper’s Gas being delivered at the Receipt Point(s) exceeds ShipperXxxxxxx’s Scheduled Confirmed Nomination(s) plus Gathering Fuel and any Fuel, Basic Processing Plant Fuel Fuel, Cryogenic Processing Plant Fuel, and Shrink, Shipper shall promptly reduce its Daily delivery such that the number of Dth MMBtus of Shipper’s Gas being delivered at the Receipt Point(s) equals as closely as practicable Shipper’s Scheduled Confirmed Nomination(s) plus Gathering Fuel and any Fuel, Basic Processing Plant Fuel Fuel, Cryogenic Processing Plant Fuel, and Shrink. If Shipper does not promptly reduce its Daily delivery, LMM Xxxxxxxx may cause such reduction in Shipper’s Daily delivery at whichever Receipt Point(s) LMM Xxxxxxxx deems appropriate. Notwithstanding the foregoing, Shipper Xxxxxxx may request in writing the right to create a Daily Imbalance when necessary to counteract a prior Daily Imbalance. Whether such request will be granted is within the sole discretion of LMMXxxxxxxx.