Underperformance

Transportation Notes

El Paso set an imbalance tolerance of 10% in declaring a systemwide Strained Operating Condition Tuesday. “Due to a combination of supply underperformance and takes in excess of scheduled quantities, linepack is declining at a rate that is not sustainable,” the pipeline said, adding that its Washington Ranch storage facility was on maximum withdrawal. “Performance caps are being applied to supplies that are flowing at less than scheduled quantities. Customers are strongly encouraged to review their transport to ensure that their takes are in balance with their supplies and to ensure their scheduled supplies are performing as expected. If the situation does not improve, the imbalance tolerance will be reduced and a Critical Operating Condition could be declared,” El Paso said.

January 17, 2007

Transportation Notes

Citing “a combination of receipt underperformance and takes in excess of scheduled quantities,” El Paso said Wednesday its system “is being drafted at rates that are not sustainable.” It added that performance caps will be placed on receipt points that are not performing up to scheduled quantities and urged shippers to bring their supplies in balance with their takes. Shippers owing gas to El Paso can arrange to pay gas back, the pipeline said, but if the situation fails to improve, a declaration of Strained Operating Condition may be required.

January 12, 2006

Transportation Notes

Due to continuing declines in linepack from “receipt underperformance” despite its declaration of a Strained Operating Condition Wednesday, El Paso upgraded the OFO to a systemwide Critical Operating Condition (COC) Thursday. “Performance caps are being placed on all receipt locations that are supplying volumes at less than scheduled rates,” the pipeline said. Receipt shortfalls from San Juan Basin are in excess of 350 MMcf/d, while those in the Permian Basin exceed 300 MMcf/d, it added. “Shippers should immediately evaluate performance of their suppliers and insure that they are sourcing their supplies from locations that are capable of performing…Shippers taking gas above their scheduled quantities should immediately acquire additional supply or reduce their rate of take. There is transmission system capacity available at Waha and at interconnects downstream of Keystone if shippers determine that they need additional or different sources of supply to protect their markets.” El Paso continued to encourage payback of due-pipeline imbalances.

December 9, 2005