Transco recently provided notice that temperatures well below normal were forecasted for most of its market area and recommended all shippers manage their system requirements to ensure a concurrent balance of receipts and deliveries.

In order to ensure system integrity, manage imbalances on its system and handle within-the–day volatility, effective with the beginning of gas day Monday, January 27, 2014 Transco is issuing a system-wide Imbalance Operational Flow Order (OFO).

This OFO is directed to Buyers (Shippers) consistent with Section 52 of Transco’s FERC Gas Tariff General Terms and Conditions with a minimum $50 per dt penalty. This OFO will continue until further notice and requires that all buyers ensure that their daily “Due From Shipper” imbalance (i.e. short to the pipeline) be no greater than 5% or 1,000 dts whichever is greater, for each gas day during the effectiveness of the OFO. Buyers with imbalances greater than the allowed tolerance will be subject to penalties specified in section 52.5 of Transco’s FERC Gas Tariff General Terms and Conditions.

Imbalances incurred at locations with an OBA will not be subject to this Operational Flow Order. Buyers (Shippers) with daily “Due To Shipper” imbalances (i.e. long to the pipeline) will not be subject to this Operational Flow Order.

Additional information on Operational Flow Orders is available at this link. http://www.1line.williams.com/Transco/files/training/Critical_Day.pdf

Please contact your Transportation Services Representative if you have any questions.

Rich Truxell

Manager, Pipeline Control