Notice to Shippers: Temporary Revision to the Imbalance Policy -  Transportation Services

For the 2000 October service month, all overdelivery volumes will once again be stored by TransGas for the winter and will be returned to the shipper after 2001 April 01 on a best efforts basis. Customers will be allowed to utilize Corporate Balancing before the final imbalance is established.

This practice has been followed for the past two winters, and has enabled more effective management of the TransGas system. This temporary revision to the imbalance policy was introduced in 1998 as a result of significant overdeliveries into the TransGas system in 1997 October, causing the overdelivered gas to be stored for at least one month when limited storage capacity was available. Customer co-operation, with this revised policy in 1998 and 1999 has mitigated any negative impact of the overdelivery.

In order to provide shippers with a tolerance window similar to the current policy of +3% to -3%, any underdelivery imbalance charges within the 3 to 7% range will be waived for the month of 2000 October. Thus the tolerance window will be from 0% to -7%. Imbalances in excess of 7 percent will be assessed the normal charge as per the Tariff.

The return of the stored 2000 October imbalances will take place in 2001 April, at which time stored imbalances will be added to the shipper's opening balance. Shippers should place April nominations to compensate for the imbalance return. Authorization to nominate for delivery of imbalance energy will be subject to available storage deliverability capacity, and any imbalance charges resulting from unavailable capacity will be reviewed by TransGas.

In order to assist customers in clearing their overdelivery imbalances, TransGas will ease the Corporate Balancing policy for the month of 2000 October only. Customers who hold storage contracts and have an overdelivery within 3% will be allowed to corporate balance this energy into their own storage under the following conditions:

1. The 0%-3% overdelivery must be an initial overdelivery on the contract.

2. Capacity must be available in the customer's storage contract (summer use contracts also qualify).

3. Energy in excess of 3% overdelivery will be held until April 2001.

4. Any associated transportation charges will be assessed.

For further information, please contact the undersigned at (306) 777-9603, Leanne Johnson at (306) 777-9578, or Dennis Orb at (306) 777-9559.

Yours truly,
TransGas Limited
Phil Sandham
P.A. (Phil) Sandham, P.Eng.
Executive Director, Transport, Control & Measurement