In the event of a Y2K-related disruption, Transcontinental GasPipe Line said any imbalances that are incurred on advancenominations by shippers during the first seven days of the New Yearwill be exempt from cashout penalties.

It noted a shipper must meet three criteria to be eligible forthe exemption: 1) it must provide advance nominations by no laterthan Dec. 28, 1999; 2) Transco or the shipper must experiencesystem problems in receiving, processing or confirming nominationsduring Jan. 1-Jan. 7, 2000, and the shipper must offer proof ofthis; and 3) the shipper has to notify Transco to have these daysremoved from designated contracts for purposes of the penaltycalculation by fax or e-mail no later than Jan. 15.

Because Transco “has the ability to identify specific contractsor locations, [it will] be able to isolate imbalance volumes forspecific dates and remove those imbalances from the penaltycalculation,” it said in an Oct. 15 letter to FERC. The Commissionasked Transco to explain how it planned to handle penalties for”standing” nominations in a Sept. 30 order, which approved alimited tariff waiver allowing Transco to move up its deadlines forJan. 1 deliveries.

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