Many Islands Pipe Lines (Canada) Limited Tariff
Many Island Pipe Lines (Canada) Limited Tariff
Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Table of Contents
Tab
1.
Company Structure, Operations and Contacts
2.
Facility Maps
3.
Definitions
4.
General Terms and Conditions
5.
Service Specifications Firm Service
Interruptible Service Electronic Business
6.
Nomination Procedures
7.
Rates Schedules
8.
Service Agreement – pro forma
9.
MIPL(C)L Contract Firm Service
Interruptible Service
Electronic Business Service
10. Standard Forms
Nomination Form Assignment Forms
Many Islands Pipe Lines (Canada) Limited
Description of Company Structure and Operations
Many Islands Pipe Lines (Canada) Limited (MIPL(C)L) is a wholly owned subsidiary of SaskEnergy Incorporated, a Crown Corporation pursuant to The SaskEnergy Act of Saskatchewan. MIPL(C)L owns a natural gas transmission system with nine pipelines crossing the Alberta-Saskatchewan border, one pipeline crossing the Montana- Saskatchewan border, one pipeline crossing the North Dakota-Saskatchewan border, and one pipeline crossing the Manitoba-Saskatchewan border. All pipelines inter-connect with the pipeline facilities of TransGas Limited, itself a wholly owned subsidiary of SaskEnergy Incorporated engaged in transportation and storage of natural gas. MIPL(C)L’s pipeline system is regulated by the National Energy Board (NEB) and is subject to the National Energy Board Act and associated regulations. The tolls of MIPL(C)L are regulated by the NEB on a complaint basis. MIPL(C)L is required to make copies of tariffs and supporting financial information readily available to interested persons. Persons who cannot resolve traffic, toll and tariff issues with MIPL(C)L may file a complaint with the NEB. In the absence of a complaint, the NEB does not normally undertake a detailed examination of MIPL(C)L’s tolls. MIPL(C)L also has assets and operations which are not subject to regulation by the NEB.
MIPL(C)L has entered into a Service Agreement with TransGas Limited, whereby TransGas provides the following services to MIPL(C)L:
Management Services Accounting Services Construction of Facilities Engineering Services
Legal and Regulatory Services
Day to Day Pipeline System Operations and Maintenance Receipt and Processing of Gas Nominations Electronic Business Services
Contacts:
For information pertaining to service and service offerings, please contact:
Director, Customer Services Key Account Managers
(306) 777-9811 (306) 777-9687 or (306) 777-9501
Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- A -
Access Code: means the unique identification code and password for use by Customer within the Secure Zone.
Actual Heating Value : see Heating Value.
Agent for Shipper: means where Shipper refers to more than one party, all parties represented shall appoint an agent, referred to as Agent for Shipper, to act on behalf of all parties. This may also include other agency agreements whereby an agent is appointed to act on behalf of Shipper with respect to Shipper’s obligations under the General Terms and Conditions. Agreement: means the written or electronic agreement entered into between MIPL(C)L and the Customer for the provision of Gas Services including all Schedules or Requests for Service and all written or electronic amendments, modifications and supplements thereto. Assignments: means the transfer of contractual rights or obligations from the Customer then holding such contractual rights or obligations to another Person, in whole or in part through a Capacity Release or other like action. Authorized Overrun Capacity: means the quantity of Gas which is in excess of the Contract Demand which MIPL(C)L has agreed in writing in advance to transport, but does not include any quantities of Gas contemplated for purposes of Energy Imbalance, or Impaired Receipts or Deliveries.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- B - Back Haul: means the transportation of Gas in a direction opposite to the aggregate physical flows on Gas in the pipeline. This is typically achieved when the pipeline redelivers Gas upstream of the Point of Receipt. Balancing: means equalizing Energy delivered from the Gas Transmission System with the Energy received into the Gas Transmission System.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- C -
Capacity: means the maximum quantity which can be transported in a given time interval limited by existing Service conditions.
Capacity Release: means assignment.
Central Clock Time (CCT): means Central Daylight Time when daylight savings time is in effect and Central Standard Time when daylight time is not in effect. Commodity Charge: means that portion of a Service rate based on the per unit of Service actually delivered to the Customer. Common Stream Gas: means Gas that has been commingled with or exchanged for Gas owned by Person other than Customer, prior to delivery by MIPL(C)L to the Point Of Delivery. Contract Brief: means any of the documents identified as a “Contract Brief”, included in the Tariff, detailing the particulars of a Customer’s Service requirement. This forms an attachment to the Transportation Service Agreement. Contract Demand: means the maximum quantity of Gas in any one Day that MIPL(C)L agrees to transport from the Point of Receipt to the Point of Delivery as more specifically described in the Agreement. Cubic Meter: means that quantity of Gas which at a temperature of fifteen (15) degrees Celsius and at a pressure of one hundred and one and three hundred and twenty-five thousandths (101.325) kilopascals absolute occupies one (1) cubic meter. Curtailment: means the reduction or temporary termination in firm Service by MIPL(C)L due to shortfall of gas supply capacity and pipeline capability. (See also Impaired Receipts and Deliveries). Customer: means a Person who has executed a Transportation Service Agreement with MIPL(C)L.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- D - Daily Energy Imbalance: means in respect of any Day, the event that occurs when the Energy received by MIPL(C)L at the Point of Receipt during that Day is not equal to the Energy delivered by MIPL(C)L at the Point of Delivery during that Day, taking into account Fuel Gas and Unaccounted For Gas, if applicable, and taking into account flows for Impaired Receipts and Deliveries pursuant to Section 14.4 of the General Terms and Conditions. Date of Initial Delivery: means the day that MIPL(C)L commenced transportation of Gas delivered by Shipper from the Point of Receipt to the Point of Delivery. Day: means a period of twenty-four (24) consecutive hours beginning at 09:00 hours Central Clock Time. Demand Charge: means the firm portion of a Service rate that reflects the reservation of capacity not the per unit of Service actually delivered to the Customer.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- E -
Effective Date: means the commencement date of the Service as identified on the MIPL(C)L Contract. Electronic Business Service: means the Service provided for under the MIPL(C)L Service Agreement and as outlined in Article XXVI of the General Terms and Conditions.
Energy: means the Heating Value of Gas expressed in GJ.
Energy Balance: assuming at the start of the period there is no imbalance, means that the Energy received by MIPL(C)L from, or on behalf of the Customer, at the Point of Receipt, during the period, less the Energy contained in the Fuel Gas and Unaccounted For Gas, as applicable, and taking into account flows for Impaired Receipts and Deliveries pursuant to Section 14.4 of the General Terms and Conditions, is equal to the Energy which MIPL(C)L delivered to Customer at the Point of Delivery during the said period. Evergreen: means the automatic, continuous renewal of a designated term of Service under a Service Agreement upon the failure of a Customer to provide the required notification to alter or terminate the Service Agreement. This type of renewal applies only to those terms of Service as designated in the Tariff. Expiry Date: means the date the Services contracted for by the Customer will cease, more specifically identified on the MIPL(C) L Contract, subject to Renewal Rights.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- F - Firm Service: means transportation Service that is not subject to prior claim by another Customer or class of Service. The highest priority class of Service offered to Customers, which anticipates no interruptions except for Force Majeure and Impaired Receipts and Deliveries. First Month: means the period commencing on the Effective Date, as specified on the MIPL(C) L Contract and ending at 9:00 hours CCT on the first Day of the succeeding calendar Month. Force Majeure: means any cause or occurrence not reasonably within the control of the Persons to an Agreement that typically provides relief from performance of certain obligations, particulars of which are more specifically set out in the Tariff. Fuel Gas: means a quantity of Gas required by MIPL(C)L on a MIPL(C)L Contract to provide such Service and is supplied by Customer.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- G -
Gas: means natural gas.
Gas Control: means TransGas’ Gas Control center in Regina.
Gas Transmission System: means all those facilities, including the Specific Facilities, owned or used by MIPL(C)L in the receipt, transportation, measurement, testing, compression, and delivery of Gas hereunder. Gigajoule (GJ): means Joules x 10 9 , and shall be calculated as the product of the Heating Value in MJ per Cubic Meter and the volume of Gas expressed in 10 3 m 3 .
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- H - Heating Value: means the gross Heating Value of the Gas expressed in MJ’s per Cubic Meter, produced by the complete combustion of one (1) Cubic Meter of Gas with air, at a temperature of fifteen (15) degrees Celsius and at a pressure of one hundred and one and three hundred and twenty-five thousandths (101.325) kilopascals absolute, with the Gas free of all water vapour, the products of combustion cooled to a temperature of fifteen (15) degrees Celsius, and the water formed by the combustion condensed to a liquid state.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- I -
Imbalance Energy: means that Energy required to correct a Daily Energy Imbalance or monthly Energy imbalance. Impaired Receipts and Deliveries: means the inability of MIPL(C)L to receive or deliver the quantities of Gas contracted for under a Firm Transportation Service Agreement. (See also Curtailment). Interruptible Service: means a low priority Service supplied to a Customer which anticipates and permits interruption on short notice at the discretion of MIPL(C)L, subject to conditions set out in the Tariff.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- J -
Joule: means the amount of work done when the point of application of one (1) Newton is displaced a distance of one (1) meter in the direction of the force.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- L - Load Factor: means the average quantity of Gas delivered or used over a specified time interval divided by the maximum quantity of Gas delivered or used at any time during the time interval. This may be an hour, a Day, a Week, a Month, or a year. Where the time interval is not specified, the term is generally assumed to mean the annual load factor.
Lost Gas: means Gas missing due to an event of Force Majeure.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- M -
Megajoules (MJ): means Joules x 10 6 .
MIPL(C)L: means Many Islands Pipe Lines (Canada) Limited.
MIPL(C)L Contract: means any of the documents containing the particulars of a Customer’s Service including but not limited to those identified as a “Schedule of Service”, “Request for Service”, or “Contract Brief”. MIPL(C)L Service Agreement: means a written agreement between MIPL(C)L and Shipper whereby MIPL(C)L agrees to provide Gas transportation Service (Firm or Interruptible) to Shipper and which agreement incorporates by reference the General Terms and Conditions. MIPL(C)L Tolls Schedules: means the MIPL(C)L schedules of tolls in force from time to time that are issued by MIPL(C)L and filed with the NEB. Month: means a period beginning at 09:00 hours Central Clock Time on the first Day of a calendar Month and ending at 09:00 hours Central Clock Time of the first Day of the next succeeding calendar Month providing that the First Month shall commence on the Day Gas is first delivered hereunder and shall end at 9:00 hours Central Clock Time on the first Day of the succeeding calendar Month.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- N -
NEB: means the National Energy Board or any regulatory authority hereafter having a similar jurisdiction in substitution therefore. Nomination: means a Customer’s request for Service or a change in an existing level of Service under a Service Agreement. Nomination Procedure: means the procedure identified as the “Nomination Procedure”, published by Gas Control and amended from time to time, included in the Tariff. No Renewal Rights (NRR): applies to a Service, which is not subject to Evergreen and requires the Customer to request renewal of Service, which will be considered a new Service request subject to Capacity approval and to the TransGas Queue Policy and Procedures. Failure to request renewal of Service will automatically result in the termination of the Service.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- P - Person: means and includes MIPL(C)L, a Customer, a corporation, a company, a partnership, an association, a joint venture, a trust, an unincorporated organization, a government, or department of a government or a section, branch, or division of a department of a government. Point of Delivery: means the point or points on MIPL(C)L’s system, as specified in the MIPL(C)L Contractto a Service Agreement, at which MIPL(C)L delivers from its Gas pipeline system to Shipper the Gas that has been transported hereunder. Point of Receipt: means the point or points on MIPL(C)L’s system, as specified in the MIPL(C)L Contract to a Service Agreement, at which MIPL(C)L receives from Shipper the Gas to be transported hereunder. Prime Rate: means the annual rate of interest announced from time to time by the Royal Bank of Canada as being its reference rate for determining the interest rates on Canadian dollar commercial loans in Canada.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- R -
Rates Schedule: means any of the schedules identified as a “Rates Schedule” included in the Tariff, specifying costs required to be paid by Customer for provision of Service. Renewal Right: means the right the Customer has to renew Service provided by MIPL(C)L, as detailed in the Tariff. Request for Service: means the electronic submission by the Customer providing the particulars of a requested Service.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- S - Schedule of Service: means any of the schedules identified as a “Schedule of Service”, included in the Tariff, detailing the particulars of a Customer’s Service requirement. This forms an attachment to the Transportation Service Agreement. Secure Zone: means an area within the TransGas website that may contain certain information specific to the Customer and has access limited to TransGas, MIPL(C)L and Customer or Customer’s designate. Service: means and includes the provision of, the use of, or the provision and use of the Gas Transmission System Facilities for the purpose of providing the Customer with any service described in the Tariff. Service Agreement: means an Agreement between MIPL(C)L and Customer respecting the provision of any Service described in the Tariff. Service Specifications: means those terms and conditions set out in the Tariff which detail unique terms and conditions for a designated Service provided to Customers, by MIPL(C)L.
Shipper: see Customer.
Specific Facilities: means those facilities described in the Agreement, under other conditions, attached to a Transportation Service Agreement which are installed by MIPL(C)L for the benefit of Shipper for the purpose of providing transportation service to Shipper.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- T - Tariff: means this published MIPL(C)L Tariff, including, but not limited to, the Rates Schedules, the General Terms and Conditions, the Service Specifications, Service Agreements, Schedules of Service, under which Service will be supplied to a Customer. The Tariff is subject to amendment as set out in the General Terms and Conditions.
TCPL: means TransCanada Pipelines Limited.
Thousand Cubic Meters or 10 3 m 3 : means one thousand (1,000) Cubic Meters of Gas.
TransGas: means TransGas Limited.
Transporter: means MIPL(C)L.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- U - Unaccounted For Gas: means the difference between the amount of Gas delivered to the Gas Transmission System for transportation and that redelivered by MIPL(C)L, taking into account Fuel Gas, plant shrinkage and imbalances. This difference includes leakage, discrepancies due to meter inaccuracies, and other variants.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- W -
Week: means a period of seven (7) consecutive Days.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
Definitions
- Y -
Yearly After Initial Term (YAIT): synonymous with Evergreen.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
GENERAL TERMS AND CONDITIONS
..................... ...................Page
Article I
General Provisions ...................................................................................... 1
Article II
Delivery Pressures....................................................................................... 3
Article III
Quantity of Gas ........................................................................................... 3
Article IV
Quality of Gas ............................................................................................. 4
Article V
Measurement of Gas ................................................................................... 6
Article VI
Standards of Measurement and Tests.......................................................... 9
Article VII
Liability and Indemnity............................................................................. 12
Article VIII Incorporation in Toll Schedules and Transportation Service Contracts ... 13
Article IX
Unaccounted For Gas, Fuel Gas and Lost Gas ......................................... 13
Article X
Financial Assurances................................................................................. 14
Article XI
Billings and Payments............................................................................... 14
Article XII
Force Majeure ........................................................................................... 16
Article XIII Termination Upon Default ........................................................................ 19
Article XIV Impaired Receipts or Deliveries................................................................ 20
Article XV
Queue For Service......................................................................................22
Article XVI Electronic Business ....................................................................................23
Article XVII Miscellaneous Provisions.......................................................................... 24
Article XVIII Service Categories..................................................................................... 26
Many Islands Pipe Lines (Canada) Limited MIPL(C)L
General Terms and Conditions
The uppercase terms used herein shall have the meanings as ascribed to the corresponding terms set out in the Definitions. *
ARTICLE I - GENERAL PROVISIONS
1.1 A MIPL(C)L Service Agreement is solely for transportation Service and Shipper shall not acquire any title or interest in the Gas Transmission System of MIPL(C)L and MIPL(C)L shall not acquire any title or interest in the Gas being transported thereunder. 1.2 MIPL(C)L does not dedicate the Gas Transmission System or any segment thereof to transport Gas for Shipper hereunder, and accordingly the routing and facilities used in the transportation of Gas for Shipper shall be at MIPL(C)L's sole discretion. 1.3 Shipper acknowledges that Gas transported in the Gas Transmission System may be commingled with or exchanged for Gas owned by Persons other than Shipper. MIPL(C)L shall not be required to deliver at the Point of Delivery Gas with the same gross Heating Value or containing the same constituent parts as Gas delivered at the Point of Receipt. However MIPL(C)L shall deliver Gas which shall meet the Gas quality requirements as set forth in Paragraph 4.1 of these General Terms and Conditions. 1.4 Shipper represents that all Gas delivered to MIPL(C)L by Shipper will be owned by Shipper at the time such Gas is delivered free and clear of encumbrances, claims and liens of other parties. If there are any such encumbrances, claims and liens, Shipper is nevertheless authorized or has the right to make such delivery notwithstanding such encumbrances, claims, liens or any of them; provided such encumbrances, claims or liens do not in any way adversely affect MIPL(C)L. Shipper covenants and agrees to indemnify and save harmless MIPL(C)L from any such encumbrances, claims or liens. 1.5 MIPL(C)L and Shipper mutually undertake to operate and maintain their respective pipeline systems and equipment in such a manner as not to interfere with the system or equipment owned by the other party and in particular each party undertakes and agrees to consult with the other before commencing construction or operation of any new equipment or facilities which such party reasonably expects might interfere with or affect the operation of the other party's pipeline system or equipment and to make modifications to the design or construction of any such equipment or facilities as reasonably may be requested of it to minimize any interference with such party's pipeline system or equipment.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
General Terms and Conditions
1.6 Shipper represents that all necessary governmental authorizations, permits and permissions have been obtained or will be obtained prior to the Date of Initial Delivery hereunder for the gathering, compression and processing of Gas and the transmission thereof to, into and from the Gas Transmission System and for the eventual delivery to its markets. 1.7 All Gas delivered to MIPL(C)L by Shipper for transportation shall be under the exclusive control of MIPL(C)L from the time such Gas is accepted by MIPL(C)L at the Point of Receipt until such Gas is redelivered to Shipper at the Point of Delivery. 1.8 Shipper covenants and agrees to install or have installed the necessary monitoring, scrubbing, shutdown equipment and to implement operating procedures to ensure that all objectionable matter as set out in Paragraph 4.1(b) of the General Terms and Conditions herein has been removed prior to delivery of Gas into the Gas Transmission System. 1.9 Where Shipper refers to more than one party, all parties represented by the term Shipper shall appoint an agent referred to herein as "Agent for Shipper" to act on behalf of all parties. The Agent for Shipper so appointed shall be authorized to deal directly with MIPL(C)L on all matters pertaining to these General Terms and Conditions. 1.10 In the event that Shipper refers to only one party, Shipper may appoint an Agent for Shipper for all purposes with respect to the MIPL(C)L Service Agreement. Where an Agent for Shipper has been appointed, MIPL(C)L shall have full and sufficient authority to deal with the Agent with respect to all matters relating to the MIPL(C)L Service Agreement in the same manner as if dealing with Shipper, and Shipper will indemnify and save harmless MIPL(C)L from any losses, demands, claims, costs or expenses that it may incur or that may arise due to MIPL(C)L’s reliance on the Agent’s authority. The Agent for Shippers shall remain in effect until written notice to the contrary is received by MIPL(C)L from the Shipper. Nothing contained in this section shall release Shipper from any of its obligations, agreements, covenants, representations, or warranties contained in the MIPL(C)L Service Agreement.
The terms Shipper and Agent for Shipper shall be synonymous.
Alternate Receipt and Delivery Point Locations
1.11
MIPL(C)L may authorize Shipper to deliver Gas to MIPL(C)L at an alternate Point of Receipt on the pipeline where Service is provided under the MIPL(C)L Service Agreement or to have Shipper take receipt of Gas at an alternate Point of Delivery on the pipeline where Service is provided under the MIPL(C)L Service Agreement.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
General Terms and Conditions
ARTICLE II - DELIVERY PRESSURES
2.1 Shipper agrees to deliver the Gas, or cause the Gas to be delivered, to MIPL(C)L at the Point of Receipt at such pressures as MIPL(C)L requires from time to time at the Point of Receipt up to the maximum pressure at the Point of Receipt as specified in Part I of of a MIPL(C)L Contract. MIPL(C)L reserves the right to change the maximum pressure at the Point of Receipt upon six (6) Months’ written notice to Shipper.
2.2 MIPL(C)L agrees to deliver the Gas, or cause the Gas to be delivered, to Shipper at the Point of Delivery at pressures as follows:
(a) at an interconnecting pipeline; at pressures as required by the interconnecting pipeline, subject to the maximum pressure limit as set out on the respective MIPL(C)L Contract;
MIPL(C)L reserves the right to change the maximum and/or minimum pressure at the Point of Delivery upon six (6) months written notice to Shipper.
(b) at an consumer’s facilities; at gauge pressures within the limits as set out on the respective MIPL(C)L Contract;
ARTICLE III - QUANTITY OF GAS
3.1 Subject to the other provisions of these General Terms and Conditions, MIPL(C)L agrees to receive from Shipper each Day at the Point of Receipt the quantity of Gas which Shipper tenders for transportation on such Day up to the Point of Receipt Contract Demand and MIPL(C)L agrees to tender for delivery to Shipper and Shipper shall take on such Day at the Point of Delivery, the same said quantity of Gas, less Shipper's share of MIPL(C)L's Unaccounted For Gas and Fuel Gas as determined in accordance with Article IX hereof, up to the Point of Delivery Contract Demand. 3.2 Customer agrees to place a Nomination with Gas Control, specifying in GJ’s, the amount of Gas to be made available at the Point of Receipt and at the Point of Delivery in compliance with the Nomination Procedure, as set out within this Tariff. In the event that Customer is required during a Month to deliver at the Point of Receipt an amount that is different from the amount of Gas to be delivered at the Point of Delivery, Customer shall give notice to Gas Control, at the time of Nomination, of the amount to be delivered on any such Day and the purpose of such difference, including the purposes of Energy Balancing or making up Impaired Receipts or Deliveries.
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
General Terms and Conditions
3.3 Shipper and MIPL(C)L agree to deliver and receive Gas at hourly rates of flow as nearly constant as possible. Departures from scheduled daily deliveries due to the inability of Shipper or MIPL(C)L to maintain precise control shall be kept to a minimum permitted by operating conditions. Notwithstanding the foregoing, the maximum hourly rate of flow at the Point of Receipt shall not be greater than one hundred and twenty percent (120%) of the hourly equivalent of the Contract Demand at the Point of Receipt and at the Point of Delivery.
3.4 Shipper agrees to ensure that at all times that Gas is delivered hereunder, that an Energy Balance will exist between the following:
(a) the Energy received by MIPL(C)L at Point of Receipt, less any Unnacounted For Gas and Fuel Gas, if applicable; and
(b)
the Energy delivered by MIPL(C)L at the Point of Delivery.
Amounts of Gas delivered, and approved by Gas Control, for the purposes of Energy Balancing or making up Impaired Receipts or Deliveries are not included in determining the Energy Balance. 3.5 In the event that Customer on any Day or number of Days desires to deliver an amount of Gas at a Point of Receipt which is in excess of the Contract Demand, other than those amounts delivered for the purposes of Energy Balances or making up Impaired Receipts and Deliveries, Customer shall make application in writing to MIPL(C)L for an Authorized Overrun Capacity. 3.6 In the event a Daily Energy Imbalance exists at any time, MIPL(C)L may take any action whatsoever to correct the Daily Energy Imbalance, including, without limitation, restricting the flow of Gas at either the Point of Receipt or the Point of Delivery; provided however, that MIPL(C)L agrees not to take any such action if the Daily Energy Imbalance has been corrected.
ARTICLE IV - QUALITY OF GAS
4.1 The Gas delivered at the Point of Receipt hereunder shall at all times comply with the following quality requirements:
(a) Heating Value: The Gas delivered hereunder shall have a Heating Value not greater than thirty-nine and no hundredths (39.00) MJ's per Cubic Meter nor less than thirty-six and no hundredths (36.00) MJ's per Cubic Meter. However, on a non-precedent setting basis, and at the option of MIPL(C)L,
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
General Terms and Conditions
Gas of a higher or lower Heating Value may be delivered under specific conditions previously approved in writing by MIPL(C)L.
(b) Freedom from Objectionable Matter: The Gas to be delivered by Shipper hereunder:
(i)
Shall be commercially free from sand, dust, gums, liquids, oils, impurities and other objectionable substances which may become separated from the Gas and interfere with its transmission through pipelines or which may interfere with the commercial utilization of the Gas, and shall not have a hydrocarbon dewpoint in excess of minus ten (-10) degrees Celsius at a pressure of fifty-five hundred (5,500) kilopascals absolute. Shall be commercially free from hydrogen sulphide, that is shall not contain more than six (6) milligrams of hydrogen sulphide per one (1) Cubic Metre of Gas.
(ii)
(iii)
Shall not contain more than twenty-three (23) milligrams of total sulphur per one (1) Cubic Metre of Gas.
(iv)
Shall not contain more than six (6) milligrams of mercaptan sulphur per one (1) Cubic Metre of Gas, subject only to the provisions of clause 10.19 of Canadian Standards Association (CSAZ 184-M92 as amended), regarding odourization of Gas, where applicable.
(v)
Shall not contain more than fifteen (15) millilitres of nitric oxide per one (1) Cubic Metre of Gas.
(vi)
Shall not contain more than fifteen (15) millilitres of total oxides of nitrogen per one (1) Cubic Metre of Gas.
(vii) Shall not contain more than two percent (2%) by volume of carbon dioxide.
(viii) Shall be as free of oxygen as Shipper can keep it through the exercise of all reasonable precautions and shall not in any event contain more than four-tenths of one percent (0.4%) by volume of oxygen.
(ix)
Shall have been dehydrated, if necessary, by Shipper for removal of water present therein in a vapour state, and in no event contain more than sixty-five (65) milligrams of water vapour per one (1) Cubic Metre of Gas, when measured at a pressure of one hundred and one
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Many Islands Pipe Lines (Canada) Limited MIPL(C)L
General Terms and Conditions
and three hundred and twenty-five thousandths (101.325) kilopascals absolute and a temperature of fifteen degrees (15 o ) Celsius.
(x)
Shall not exceed a temperature of fifty degrees (50 o ) Celsius at the Point of Receipt hereunder.
4.2 MIPL(C)L, at its expense, may make tests of the Gas being delivered hereunder to determine whether the Gas complies with the quality requirements as set forth in Paragraph 4.1. MIPL(C)L shall have the right, by notice, to require Shipper to remedy any deficiency, within the time specified by MIPL(C)L, in the quality of the Gas and, in the event such deficiency is not remedied, the right to require Shipper to discontinue deliveries hereunder until such deficiency is remedied. During the period of such discontinuance, Shipper shall continue to pay any Demand Charges under the applicable toll. 4.3 The provisions of these General Terms and Conditions with regard to this Article IV and the specifications contained in Paragraph 4.1 shall apply, mutatis mutandis, to Gas that is delivered hereunder at the Point of Receipt in a common stream with Gas of other Shippers ("Common Stream Gas") and to the extent that the Common Stream Gas meets the specifications of this Paragraph 4.1, then Shipper shall be deemed to have complied with its obligations under this Article IV and to the extent that the Common Stream Gas fails to meet such specifications, Shipper shall be deemed to have failed to comply with the obligations under this Article IV. 4.4 All Gas delivered by MIPL(C)L to Shipper at the Point of Delivery shall have the Heating Value and quality that results from the Gas having been commingled in the Gas Transmission System. 4.5 Notwithstanding the provisions of Paragraphs 4.1, 4.2, 4.3 and 4.4, if the Gas quality specifications required at the Point of Delivery differ from those set forth in Paragraphs 4.1, 4.2 and 4.3 of this Article IV, then MIPL(C)L reserves the right to require Shipper to deliver Gas with Gas quality specification identical to those required at the Point of Delivery.
ARTICLE V - MEASUREMENT OF GAS
The measurements and tests of the Gas delivered hereunder shall be governed by the following:
5.1 All measuring and testing equipment, devices and materials required herein shall be of standard manufacture and type, and with all related equipment, appliances and buildings shall be installed, maintained and operated, or furnished by MIPL(C)L at
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MIPL(C)L's expense. Shipper may install and operate check measuring and testing equipment which shall not interfere with the use of MIPL(C)L's equipment.
Pursuant to the EGI Act and Measurement Canada Bulletin G-14 (“G- 14”), Measurement Canada (“MC”) has given conditional permission for Point of Receipt sites to be considered Low Intervention Trade Transaction sites (“LITT Sites”) where the use of gas metering equipment without verification and sealing is permitted at the Low Intervention Trade Transaction level. Notwithstanding anything else herein, the following shall apply at LITT Sites:
(a)
The Low Intervention Trade Transactions are subject to the provisions and conditions listed in G-14, a copy of which may be viewed on MC’s website; The Customer agrees that the gas metering equipment at LITT sites has been initially calibrated and will be periodically recalibrated (and reprogrammed where necessary), in accordance with the process outlined in Clauses 5.2 and 5.3 herein; Any measurement disputes arising between the Customer and MIPL(C)L shall be resolved in accordance with the provisions of Clause 5.3 herein;
(b)
(c)
(d) The Customer and MIPL(C)L acknowledge that the conditional permission granted by MC may restrict MC’s ability to successfully conclude a measurement dispute investigation, if MC’s involvement were to be requested; and (e) The Customer and MIPL(C)L agree to the implementation of Low Intervention Trade Transactions in accordance with G-14 and either the Customer or MIPL(C)L has the right to request a revocation of the conditional permission for Low Intervention Trade Transactions in accordance with G-14. 5.2 The accuracy of MIPL(C)L's measuring and testing equipment shall be verified in accordance with common industry standards and at other times upon request of MIPL(C)L or Shipper. Such request is not to be made more often than once per Month. Notice of the time and nature of each test to be conducted at the point of measurement shall be given by MIPL(C)L to Shipper sufficiently in advance to permit Shipper's representative to be present. Tests and adjustments shall be made in the presence of and observed by representatives of both MIPL(C)L and Shipper, if
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present. If, after notice, Shipper fails to have a representative present, the results of the tests and adjustments shall be considered to be accurate until the next tests and adjustments have been made. All tests of such measuring and testing equipment shall be made at MIPL(C)L's expense, except that Shipper shall bear the expense of tests made at its request if the inaccuracy in the measurement of the volume or Heating Value of the Gas is less than the amount specified in Paragraph 5.3 hereof. 5.3 If at any time any of the measuring or testing equipment is found to be out of service or registering inaccurately, it shall be adjusted at once to read as accurately as possible. The volume or Heating Value of the Gas desired to be measured or tested during the period in which such equipment was registering inaccurately or was out of service shall be estimated by:
(a) using the data recorded by any check measuring equipment installed and accurately registering, or
(b) if such check measuring equipment is not installed or is not registering accurately, by correcting the error by calibration tests or mathematical calculations, or (c) if the methods provided in Subsections (a) and (b) cannot be used, by estimations based upon deliveries under similar conditions during the period in which the equipment was registering accurately. If the period in which such equipment was registering inaccurately or was out of Service is not known or agreed upon it shall be deemed to have been registering inaccurately or out of Service for a period of one-half (1/2) of the elapsed time since the last test.
If it is determined in accordance with the foregoing that during such period:
(i)
the volume measurement at the average hourly rate of flow is in error in an amount exceeding two percent (2%), or the Heating Value measurement is in error in an amount exceeding one-half of one percent (1/2 of 1%),
(ii)
then the previous readings of the measurement equipment or the recording calorimeter, as the case may be, shall be corrected to zero (0) error in the manner set forth above and all records and billings for such a period recalculated according to zero (0) error. No corrections in the records or billings shall be made for errors less than the limits specified above.
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5.4 MIPL(C)L and Shipper shall have the right to inspect equipment installed or furnished by the other, and the charts and other measurement or testing data of the other at all times during business hours; but the reading, calibration and adjustment of such equipment and changing of charts shall be done only by the party installing and furnishing the same. Unless the parties otherwise agree each party shall preserve all original test data, charts and other similar records in such party's possession for a period of at least six (6) years. 5.5 In the case where the Gas hereunder is commingled with other Gas prior to delivery at the Point of Receipt, Shipper will be responsible for all common stream arrangements. Shipper shall provide such assurances and other information as MIPL(C)L may reasonably require to confirm that Shipper has made such arrangements, indicating the party which is to provide an accounting of the Gas in common stream. Service under these General Terms and Conditions is contingent on Shipper's compliance with the provisions of this Paragraph prior to the Date of Initial Delivery hereunder.
ARTICLE VI - STANDARDS OF MEASUREMENT AND TESTS
The standards of measurement and tests for the Gas delivered hereunder shall be governed by the following:
6.1 The unit of volume for purposes of measurement shall be one (1) Cubic Meter and will be converted to energy using the Actual Heating Value.
6.2
Amounts of Gas for billing purposes shall be determined to the nearest GJ.
6.3 All instruments and apparatus used for determining volume, pressure, temperature, relative density and total Heating Value shall be of a type approved for their intended use under the provisions of the Electricity and Gas Inspection Act being Statutes of Canada A80-81-82-83, Chapter 87, or as amended, where such approvals are required. All measurements, calculations and procedures used in determining the volume hereunder, except for the correction for deviation from Boyle's Law, shall be made in accordance with the Electricity and Gas Inspection Act (Supra) and all applicable regulations issued pursuant thereto. The correction for the deviation from Boyle's Law shall be determined from data contained in "PAR Research Project NX- 19" as published by the American Gas Association in 1962, or any subsequent revisions thereof acceptable to MIPL(C)L and Shipper.
6.4 Except as hereinbefore set forth, in the event of any conflict between these General Terms and Conditions and the Electricity and Gas Inspection Act (Supra), related to
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the measurement and testing of Gas, the provisions of the Electricity and Gas Inspection Act (Supra), as it is in force and effect from time to time, shall prevail.
6.5 The Gas shall be metered by orifice, displacement, or other types of meter generally accepted in the industry.
6.6 The relative density of the Gas delivered hereunder shall be determined at MIPL(C)L's option, either:
(a) by a recording Gas gravitometer installed, operated and maintained by MIPL(C)L in which case the arithmetic average of readings recorded each Day shall be deemed to be the relative density of, and shall be used in computing the volume of, Gas delivered during such Day, or (b) by tests conducted by MIPL(C)L on samples of such Gas. The Gas samples to be tested may be either spot samples or continuous samples, but shall be taken in such a manner and at such times to ensure that the samples taken and tested are representative of the Gas delivered hereunder. Tests shall be concurrent with the measurement of the Gas delivered or if only one such test be made during a particular Month, the figure resulting from such test shall have effect upon the first Day of the Month next succeeding the Month in which such test was made, or if more than one such test be made during a particular Month, the results of such tests shall be averaged to the nearest five one-thousandth (.005) and the resulting figure shall likewise have effect upon the first Day of the Month next succeeding the Month in which such tests were made, PROVIDED that the figure resulting from the first test or tests made during the first Month shall also have effect during the first Month. Upon a figure having effect, the same shall remain in force and effect until the Effective Date of the next succeeding figure and each figure, during the period in which it has effect, shall be deemed to be the relative density of all Gas delivered during such period. 6.7 The flowing temperature and pressure of the Gas shall be determined by means of a recording temperature and pressure recorder of standard manufacture and type. The recorders shall be installed and maintained by MIPL(C)L. The arithmetical average of readings recorded each Day shall be deemed to be the temperature and pressure of the Gas and shall be used in computing the volumes of Gas delivered during such Day.
6.8 The Actual Heating Value of the Gas delivered hereunder shall be established at MIPL(C)L's option, either:
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(a) by the use of a standard recording calorimeter installed, operated and maintained by MIPL(C)L, in which case the Heating Value of the Gas delivered each Month shall be determined by weighting volumetrically the daily Heating Value, or (b) by tests of samples of such Gas conducted by MIPL(C)L. The Gas samples to be tested may be either spot samples or continuous samples but shall be taken in such a manner and at such times to ensure that the samples taken and tested are representative of the Gas delivered hereunder. Samples shall be concurrent with measurement of the Gas delivered or if only one such test is made during a particular Month, the Heating Value established by such test shall have effect upon the first Day of the Month next succeeding the Month in which such test was made or if more than one such test was made during a particular Month, the results of such tests shall be averaged to the nearest one-one hundredth (.01) MJ per Cubic Metre and the resulting figure shall likewise have effect upon the first Day of the Month next succeeding the Month in which such tests were made; PROVIDED that the Heating Value established by the test or tests made during the first Month shall also have effect during the first Month. Upon a figure having effect, the same shall remain in force and effect until the Effective Date of the next succeeding figure, and each figure, during the period in which it has effect, shall be deemed to be the Heating Value of all Gas delivered during such period. 6.9 If there are any compression facilities upstream from the Point of Receipt, Shipper shall cause to be provided sufficient pulsation dampening equipment to ensure that the compression facilities do not interfere with the operation of MIPL(C)L's facilities.
6.10 MIPL(C)L, at it sole discretion, may use the measurement or testing equipment of an upstream or downstream pipeline, providing it meets industry standards.
(a) MIPL(C)L and Shipper hereby agree that in the absence of manifest error and notwithstanding anything contained elsewhere in these General Terms and Conditions, if the Point of Delivery is a TCPL interconnection, TCPL's, not MIPL(C)L's or TransGas', measuring and testing equipment shall be used to determine the quantity and Heating Value of Gas delivered at the Point of Delivery under these General Terms and Conditions and TCPL's measuring and testing of Gas procedures shall apply. (b) Shipper acknowledges that MIPL(C)L shall have the option to install check measuring equipment at the Point of Delivery which shall be used to determine quantity and quality only where the TCPL equipment is found to be malfunctioning.
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ARTICLE VII – LIABILITY AND INDEMNITY
7.1 Subject to the other provisions contained in this Tariff, Shipper shall be liable to MIPL(C)L for all claims, damages, expenses, liabilities and losses whatsoever which MIPL(C)L may bear, sustain, pay, incur, or suffer as a resultof or in connection with any act, omission or default on the part of Shipper with respect to any of its obligations assumed under the provisions of this Tariff. 7.2 Shipper shall indemnify and save harmless MIPL(C)L of and from all manner of actions, causes of action, proceedings, claims, demands, losses, costs, damages and expenses whatsoever which may be brought or made against MIPL(C)L or which MIPL(C)L may sustain, pay or incur as a result of or in connection with any act, omission or default on the part of Shipper with respect to any of its obligations assumed under the provisions of this Tariff, or as a result of the negligence of Shipper, its employees, agents or contractors. In the event any such manner of action, cause of action, proceeding, claim, demand, loss, cost, damage or expense is caused by the concurrent default or negligence of MIPL(C)L or by the failure of MIPL(C)L to perform and observe its obligations under the provisions of this Tariff, Shipper shall be relieved of its obligations to indemnify MIPL(C)L to the extent such manner of action, cause of action, proceeding, claim, demand, loss, cost, damage, or expense was caused by such concurrent default, negligence, or failure to perform. 7.3 Subject to the other provisions contained in this Tariff, MIPL(C)L shall be liable to Shipper for all claims, damages, expenses, liabilities and losses whatsoever which Shipper may bear, sustain, pay, incur or suffer as a result of or in connection with any act, omission or default on the part of MIPL(C)L with respect to any of its obligations assumed under the provisions of this Tariff. 7.4 MIPL(C)L shall indemnify and save harmless Shipper of and from all manner of actions, causes of action, proceedings, claims, demands, losses, costs, damages and expenses whatsoever which may be brought or made against Shipper or which Shipper may sustain, pay or incur as a result of or in connection with any act, omission or default on the part of MIPL(C)L with respect to any of its obligations assumed under the provisions of this Tariff, or as a result of the negligence of MIPL(C)L, its employees, agents or contractors. In the event any such manner of action, cause of action, proceeding, claim, demand, loss, cost, damage or expense is caused by the concurrent default or negligence of Shipper or by the failure of Shipper to perform and observe its obligations under the provisions of this Tariff, MIPL(C)L shall be relieved of its obligations to indemnify Shipper to the extent such matter of action, cause of action, proceeding, claim, demand, loss, cost, damage or expense was caused by such concurrent default, negligence or failure to perform.
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