PALS SRO Program Description
PALS SRO Program Overview

Section 11.1 of the General Terms and Conditions of the Rockies Express Pipeline (REX) tariff states that a shipper's receipts and deliveries under its service agreement should be in balance on a daily basis. However, from time to time, a shipper may have unexpected losses of supply or market during the nomination, confirmation or scheduling process requiring action by the shipper in order to remain in balance for the gas day. In these situations, shippers may submit a nomination in the current cycle (if there is time) or in the next nomination cycle either revising supplies/markets or utilizing REX’s Park and Loan Service (PALS). PALS is an interruptible park and loan service supported by system line pack.

The “Standing Request Order” (SRO) program under the PALS Rate Schedule is offered to all shippers to provide a tool for dealing with being long or short gas on any day. The locations available for the PALS SRO Program can be obtained by clicking on the PALS/SRO Program Rates selection in the menu on the left. When operationally available under the PALS SRO program, shippers are able to nominate Parks or Loans at these locations to balance daily receipts and deliveries under a service agreement. The rates for this program are subject to change and can also be obtained by clicking on the PALS/SRO Program Rates selection in the menu on the left. The availability of this program for Parks or Loans on any given day will be posted on the Current Pipeline Conditions notice posted each business day in the Informational Postings/Notices section of this web site.

Shippers who desire to use the PALS SRO program should request a PALS SRO Park Request Order and a separate PALS SRO Loan Request Order to be set up for each location. While a shipper may have multiple SROL and/or SROP contracts at the same Hub Pool, the total Maximum Aggregate Quantity (“MAQ”) for all SROP and/or SROL contracts at that Hub Pool cannot exceed 50,000 Dth per SROP and per SROL. When operationally available, shippers may nominate a Park, Loan, Park Payback or Loan Payback up to the MAQ of 50,000 Dth/d. Any daily nominated quantity or cumulative balance exceeding the MAQ of 50,000 Dth will incur authorized overrun charges.

It is important to note that balances which occur on PALS SRO Park and PALS SRO Loan contracts do not offset each other. Each balance must be reduced or eliminated with PALS SRO Payback nominations for the specific contract. PALS SRO Park balances cannot go negative and PALS SRO Loan balances cannot go positive.

Transportation “Payback” nominations will not be accepted to balance a loss of supply or market unless there is a contract imbalance due to a physical allocation or confirmation cut that could not be pathed in time prior to the confirmation deadline. All payback nominations will need to be approved by REX.

Shippers who desire new PALS SRO contracts under existing PALS Service Agreements or new PALS Service Agreements should contact their Account Director.

Questions regarding the SRO program can be directed to your Account Director.

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