Tariff Section 3.2: TransGas Energy Pool

A. TEP Service Specification 

1. Definitions 
   The uppercase terms used herein shall have the same meanings as are ascribed to the corresponding terms in the Definitions section of the Tariff, unless otherwise defined herein. 
2. Description of Service 
   All Customers holding valid transportation or Storage Service, or NIT to TEP Service, will also hold a valid TransGas Energy Pool Service. All Gas delivered to or from TEP must be delivered to or from Customer’s own Shipper’s Imbalance Account. 
   Subject to the terms and conditions applicable to TransGas Energy Pool (“TEP”) Service, the Service hereunder shall consist of any one or more of the following: 
   1. the ability of a Customer, via Nomination, to receive Gas into TEP from Customer’s contracted Point of Receipt; or 
   2. the ability of a Customer, via Nomination, to receive Gas withdrawn from Customer’s Storage account; 
   3. the ability of a Customer to deliver and receive Gas via a Title Transfer Nomination in TEP to and from any Customer’s Shipper’s Imbalance Account; or 
   4. the ability of a Customer, via Nomination, to deliver Gas out of TEP to Customer’s contracted Point of Delivery. 
   5. the ability of a Customer, via Nomination, to deliver Gas to Storage for Injection into Customer’s Storage account. 
   6. the ability of a Customer to hold Energy imbalances within Shipper’s Imbalance Account, within tolerance prescribed by TransGas and as outlined in the General Terms and Conditions. 
3. Service Availability 
   Services available in TEP are subject to the Customer complying with security requirements of TransGas, as outlined in the General Business Policy provisions of the Tariff, as well as the Customer executing and complying with the provisions of the TransGas Service Agreement and a TransGas Contract for this type of Service and obtaining TEP Service.  Customer may only hold one TEP Service. 
4. Common Stream Operator Provisions 
   TransGas shall act in the capacity as Common Stream Operator for TEP.  Customers shall be required to comply with provisions regarding Common Stream Gas as detailed in the Tariff.  TransGas shall complete Allocations on the basis of deliveries to transport accounts leaving TEP or confirmed Nominations of Title Transfers within TEP. 
5. Nomination Procedures 
   All Customers receiving TEP Service are required to comply with the Nomination Procedures set out for Customers in the Tariff. 
6. Title Transfers 
   TransGas will allow each Customer Title Transfers on a daily basis.  However, Title Transfers will only be allowed if any resulting imbalance remains within the prescribed tolerance levels. 
7. Imbalance Charge
   In the event that TrasnGas utilizes Clause 4.4(ii) of the General Terms and Conditions to enforce a Customer's compliance with its Balancing obligations, TransGas will render to the Customer an Imbalance Charge for the purchase or sale of Gas, as the case may be, in accordance with the following calculation:
   Cost of Gas Purchased = Cost of actual gas + incremental transport cost + inventory management fee of $1.00 /GJ
   Cost of Gas Sold = Credit of actual gas cost - incremental transport cost - inventory management fee of $1.00 /GJ
8. Term of Service 
   For those Customers holding valid transportation Service, or NIT to TEP Service, Customer must hold TEP Service.  The TEP Service will automatically renew with the renewal of any transportation or NIT to TEP Service.  Customer may terminate TEP Service, upon the termination of all transportation service. 
   In those instances where Customer does not hold valid transportation Service, or NIT to TEP Service, the term of TEP Service shall be for a minimum period of thirty (30) Days commencing on the Effective Date.  The term will Evergreen for a further thirty (30) Day period, unless Customer provides TransGas written notice to terminate the Service at least forty-eight (48) hours prior to the expiry of the current term for which TransGas had agreed to provide such Service. 
9. Application for Service 
   Applications for Service under this Service Specification shall be in a form as TransGas may prescribe from time to time. 
10. General Terms and Conditions 
    The General Terms and Conditions of the Tariff and the provisions of the TransGas Service Agreement for Service in TEP are applicable to this Service Specification to the extent that such Terms and Conditions and provisions are not inconsistent with this Service Specification.  In the event there is a conflict between the provisions referenced herein and the terms and conditions of the TransGas Contract, TransGas and Customer agree that the provisions of the TransGas Contract shall prevail.