Storage Transfers Including those related to Capacity Release

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• Storage Transfers (Including those related to
  Capacity Release)
• Currently applies to TETLP and Saltville, L.L.C.

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Storage Transfers

• As of July 2008, LINK provides the ability to
  perform storage transfers between new or existing
  contracts, and between terminating or recalled
  Capacity Release contracts, through the revised
  Storage Balance Transfer screen.
• The screen name was changed from Capacity Release
  Storage Balance Transfer to Storage Balance
  Transfer to reflect that linkages from
  Replacement Storage Contracts to Releasing
  Contract holders were removed. This allows the
  screen to now be used by all storage contract
  holders.
• While this new method is available, customers can
  continue to utilize in-field transfer nominations
  during the current month or utilize retroactive
  adjustments after month end to transfer storage
  balances or true up transfers of estimated
  volumes.

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Storage Transfers- Rules

• In order to utilize the screen, the customer must
  have nomination access rights.
• For Capacity Release Storage Transfers
• Assuming the contract termination date is at the
  end of the month (ex. January 31), customers can
  begin initiating transfers at 200 AM CCT on the
  gas day the transfer is effective for injection
  (ex. January 30, 2008 for a transfer effective to
  date of February 1, 2008).
• All transfers must be both initiated and approved
  through these screens by 8AM CCT on the gas day
  the transfer is effective (ex. February 1, 2008).

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Storage Transfers- Rules

• For transfers other than those related to
  Capacity Release
• Transfers can be made at any time based on
  estimated storage volumes available in LINK.
  These estimates are available each day based on
  the timeline noted in the previous slide.
• For TETLP, LINK will not allow an inventory
  transfer between the contracts of the same
  Service Requester if the contract dates overlap.
  This retains the prohibition on in-field
  transfers between the same service requester but
  allows a customer to transfer inventory between
  their expiring or recalled Capacity Release
  contract and their new Capacity Release contract.
  
• For Saltville, L.L.C., customers can transfer
  inventory between any of the storage fields
  within the business unit where a contract is
  present.
• The storage volume to be transferred must be
  equal to, or less than, the estimated storage
  quantity currently available.

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Determining a Projected Storage Volume

• Before transferring a storage quantity, a
  customer may want to view their actual storage
  quantity or the projected volume for the next gas
  day.
• To view actual volumes, select the Storage/Pal
  Balance screen from Flowing Gas/Imbalance on the
  LINK menu.
• Note that the Storage/Pal Balance Summary Screen
  is currently programmed to display only the last
  allocated storage volume. To identify future
  estimated volumes, the Show Projected button
  must be pressed and the End Date changed.

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Determining a Projected Storage Volume

• To access the Storage/Pal Balance Summary screen,
  select the Storage/Pal Balance screen from
  Flowing Gas/Imbalance on the LINK menu.

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Determining a Projected Storage Volume

• Enter the storage contract number in the Storage
  K/Pal Deal field and click Retrieve. The
  screen will display only actual volumes allocated.

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Determining a Projected Storage Volume

• To view projected volumes, press the Show
  Projected button. Then, change the End Date
  to the desired projected date (1 day from the
  current gas day) and press Retrieve. The
  screen will display both projected and actual
  storage volumes.

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Storage Balance Transfer - Procedures

• Once the storage volume to be transferred has
  been identified, storage balance transfers can be
  initiated. From LINK, select the Storage/Pal
  Balance screen from Flowing Gas/Imbalance.
• Then, select the related screen option from the
  Storage/Pal Balance Summary screen to access the
  Storage Balance Transfer screen. Note that
  information does not need to be entered into the
  Storage/Pal Balance Summary Screen.

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Storage Balance Transfer - Procedures
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Storage Balance Transfer - Procedures

• Input the Service Requester Contract Number to
  withdraw from and the effective date of the
  transfer. Then, enter the Service Requester
  Contract Number to inject to and the injection
  date. Finally, hit retrieve.
• The Service Requester name will be displayed for
  both parties. The projected balance(s) will be
  displayed where the submitter has nomination
  access. For example, if a customer is
  transferring between their own contracts, they
  will see both projected balances. If they are
  transferring between parties, they will likely
  see only the projected balance for their
  contract.

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Storage Balance Transfer - Procedures
Because the gas is moving from the expiring
replacement contract to the new replacement
contract, the Effective To Date of the new
Replacement contract (injection to) should be
incremented by 1 day. For other types of
transfers, the effective date could be the same.
For example, on Saltville if a customer were
moving between their firm and interruptible
storage contracts, the effective dates could be
the same.
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Storage Balance Transfer - Procedures
ABC Company
ABC Company

• Enter the transfer quantity and then Submit.
  In our example, this is 50. At the time
  submitted, a transfer number will be assigned.

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Storage Balance Transfer - Procedures

• Note that pressing the Submit button, submits
  and automatically approves the initiator side of
  the transaction. If the submitter is the same
  Service Requester, or has nomination access
  rights to both contracts, both sides of the
  transaction will be approved as shown here.
• If the initiator made a mistake, and the parties
  are different, the initiating or receiving party
  could simply press the Disapprove button after
  submitting. Then, re-enter the quantity and
  begin again.

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Storage Balance Transfer - Procedures

• If access rights do not provide automatic
  approval of the receiving side of the
  transaction, the receiving party must also
  approve the storage transfer by accessing the
  Storage Balance Transfer screen in the same
  manner previously described.
• To facilitate communication, the receiving party
  will be sent a courtesy e-mail notifying them of
  the pending transaction.
• The receiving party must enter the transfer
  number and press Retrieve. The transfer number
  should be communicated to the receiving party
  from the initiating party.
• Next, the receiving party must press Approve.
  Note that the receiving party does not need to
  press Submit.
• Upon Approval, a courtesy e-mail will be sent to
  the receiving party notifying them that the
  transfer has been approved.

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Storage Balance Transfer - Procedures

• Finally, to verify the transaction worked
  appropriately, both the submitting and receiving
  party should verify the new storage balances in
  the Storage/Pal Balance Summary Screen.
• For TETLP, the transferred volume will be
  displayed in the Storage/Pal Transfer column.
• For Saltville L.L.C., transferred volumes will be
  displayed in the Transfer In and Transfer Out
  columns of the Storage/Pal Balance Summary screen.

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Storage Balance Transfer - Procedures

• Balances have been transferred to the receiving
  contract as noted by the 50 in the Storage/Pal
  Transfer column. The initiating contract would
  have a -50 in the same column.

ABC Company
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Additional Example
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• Saltville customer desires to transfer between
  their own storage contracts on the same gas date.
  Customer enters contract information, transfer
  dates and balances. Then, presses retrieve.

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Additional Example
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• Customer presses submit and because they have
  access rights to both contracts, the transfer is
  approved on both sides.

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Additional Example

• Storage balances are updated on both contracts.

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SaltCo
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Additional Example
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SaltCo