Operational Balancing. Despite the efforts described above, the Parties acknowledge that (a) imbalances between receipts and deliveries and variances between scheduled quantities and actual quantities may occur and (b) the Transportation Contract may provide for the payment of penalties, including, without limitation, imbalance, cashout and scheduling penalties. Company shall be responsible for any penalties or charges assessed by Transporter(s) upstream of the Delivery Point, under the Transportation Contract.
Operational Balancing. KMLP agrees that it will negotiate with each entity that operates facilities interconnecting with KMLP at Receipt Points or Delivery Points (Balance Operator) in a good faith effort to reach an agreement to deal with imbalances at such Receipt Point(s) or Delivery Point(s). At Receipt Points, KMLP may rely on PDAs under Section 7 of these General Terms and Conditions, which OBA Agreement would be a form of a Predetermined Allocation, subject to the following conditions:
Operational Balancing. Buyer shall be liable for any payments and balancing penalties assessed against Seller by the Receiving Pipeline or otherwise payable by Seller pursuant to its gas transportation agreements if and when Buyer fails to take delivery of any Conforming SNG that has been nominated for delivery to Buyer by Seller in accordance with the Scheduling and Nominating Protocol. All such imbalance payments and penalties incurred by Seller with respect to imbalances resulting from Buyer's failure to take deliveries of Conforming SNG that has been nominated to Buyer shall be added to the O&M Component of the Base Contract Price in the month incurred. Seller shall be liable for all imbalance payments and penalties incurred by Buyer, if any, with respect to imbalances resulting from Seller's failure to deliver SNG in the quantities nominated. Seller shall also be liable for all other such payments and penalties assessed in connection with the imbalances resulting from any or associated with the nomination of any Incremental Production. Seller shall use Commercially Reasonable Efforts to eliminate and/or mitigate imbalances with the Receiving Pipeline.
Operational Balancing. Seller shall enter into an operational balancing agreement or such other balancing arrangements with the Receiving Pipeline prior to the Commercial Production Date. Buyer shall have the right to review and comment on the operational balancing agreement or other balancing arrangements prior to execution by Seller. Buyer shall be liable for any payments and balancing penalties assessed against Seller by the Receiving Pipeline or otherwise payable by Seller pursuant to its gas transportation agreements if and when Buyer fails to take delivery of any Conforming SNG that has been nominated for delivery to Buyer by Seller in accordance with the Scheduling and Nominating Protocol. All such imbalance payments and penalties incurred by Seller with respect to imbalances resulting from Buyer’s failure to take deliveries of Conforming SNG that has been nominated to Buyer shall be added to the O&M Component of the Base Contract Price in the month incurred. Seller shall be liable for any payments and balancing penalties assessed against Buyer by the Receiving Pipeline or otherwise payable by Buyer, if any, with respect to imbalances resulting from Seller’s failure to deliver Conforming SNG in the quantities nominated. Seller shall also be liable for all other such payments and penalties assessed in connection with the imbalances resulting from or associated with the nomination of any Incremental Production. Seller shall use Commercially Reasonable Efforts to eliminate and/or mitigate imbalances with the Receiving Pipeline.
