Common use of Gas Balancing Clause in Contracts

Gas Balancing. 6.1 Shipper shalluse all commercially reasonable efforts to maintainbalance on a Daily basis, based onthe best available information, between each of: Transportation Tariff Pacific Northern Gas Ltd. (a) the volume of Gas scheduled for receipt to Shipper’s account under Service and the actual volume of Gas received to Shipper’s account under Service (“Volume Receipt Variance”); (b) the energy scheduled for receipt to Shipper’s account under Service andthe actual energy received to Shipper’s account under Service (“Energy Receipt Variance”); (c) the actual volume received to Shipper’s account and the actual volume of Gas delivered by Transporter under Service from Shipper’s account (“Volume Imbalance”); and (d) the actual energy received to Shipper’s account and the actual energy delivered by Transporter under Service from Shipper’s account (“Energy Imbalance”). 6.2 Any Energy Imbalance at the end of any Monthshall be correctedon a physicalbasis withinthe first twenty- five (25) Days of the next Month in a manner determined by Transporter, acting reasonably, and in consultationwith Shipper. 6.3 If Shipper fails to correct any Imbalance in accordance with Sections 6.1 or 6.2, Transporter may adjust Shipper’s Nomination and Shipper’s Daily Authorized Volume, or either of them, to the extent that Transporter, in its reasonable discretion, considers necessary to ensure compliance by Shipper with its obligations under this Article 6 andto prevent the occurrence of Imbalances by Shipper. 6.4 If on any day that a Curtailment Notice is in effect, Shipper takes gas in excess of the volume specified by Transporter in the Curtailment Notice, then Shipper shall, in addition to all other amounts payable by Shipper to Transporter pursuant to a Service Agreement, pay Transporter the following: (a) for that portion of the excess between 102.5% andup to and including 105% of such specified volume, an amount per GJ equal to five (5) times the Demand Charge; (b) for that portion of the excess between 105% and up to and including 110% of such specified volume, an amount per GJ equal to ten (10) times the Demand Charge; and (c) for that portion of the excess which exceeds 110% of such specified volume, an amount per GJ equal to fifteen (15) times the Demand Charge. For the purposes of calculating the charges payable under this Section 6.4, volumes will be converted to GJ using the Gross Heating Value specified in Section 4.4. 6.5 The foregoing balancing provisions are intended to provide Transporter and Shipper with reasonable flexibility in operating their respective facilities to balance authorized and actual Gas deliveries on a Daily basis.

Gas Balancing. 6.1 Shipper shalluse all commercially reasonable efforts to maintainbalance on a Daily basis, based onthe best available information, between each of: Transportation Tariff Pacific Northern Gas Ltd.: (a) the volume of Gas scheduled for receipt to Shipper’s account under Service and the actual volume of Gas received to Shipper’s account under Service (“Volume Receipt Variance”); (b) the energy scheduled for receipt to Shipper’s account under Service andthe actual energy received to Shipper’s account under Service (“Energy Receipt Variance”); (c) the actual volume received to Shipper’s account and the actual volume of Gas delivered by Transporter under Service from Shipper’s account (“Volume Imbalance”); and (d) the actual energy received to Shipper’s account and the actual energy delivered by Transporter under Service from Shipper’s account (“Energy Imbalance”). 6.2 Any Energy Imbalance at the end of any Monthshall be correctedon a physicalbasis withinthe first twenty- five (25) Days of the next Month in a manner determined by Transporter, acting reasonably, and in consultationwith Shipper. 6.3 If Shipper fails to correct any Imbalance in accordance with Sections 6.1 or 6.2, Transporter may adjust Shipper’s Nomination and Shipper’s Daily Authorized Volume, or either of them, to the extent that Transporter, in its reasonable discretion, considers necessary to ensure compliance by Shipper with its obligations under this Article 6 andto prevent the occurrence of Imbalances by Shipper. 6.4 If on any day that a Curtailment Notice is in effect, Shipper takes gas in excess of the volume specified by Transporter in the Curtailment Notice, then Shipper shall, in addition to all other amounts payable by Shipper to Transporter pursuant to a Service Agreement, pay Transporter the following: (a) for that portion of the excess between 102.5% andup to and including 105% of such specified volume, an amount per GJ equal to five (5) times the Demand Charge; (b) for that portion of the excess between 105% and up to and including 110% of such specified volume, an amount per GJ equal to ten (10) times the Demand Charge; and (c) for that portion of the excess which exceeds 110% of such specified volume, an amount per GJ equal to fifteen (15) times the Demand Charge. For the purposes of calculating the charges payable under this Section 6.4, volumes will be converted to GJ using the Gross Heating Value specified in Section 4.4. 6.5 The foregoing balancing provisions are intended to provide Transporter and Shipper with reasonable flexibility in operating their respective facilities to balance authorized and actual Gas deliveries on a Daily basis.