Technical Terms and Conditions of Access and Connection to Underground Natural Gas Storage Facility Láb 4 and Rules of Operation Thereof

Transcription

1 of Access and Connection to Underground Natural Gas Storage Facility Láb 4 and Rules of Operation Thereof POZAGAS, a. s. Malé námestie Malacky Slovak Republic Organisation Identification Code (IČO): entered in Commercial Registry of District Court Bratislava I, section Sa, insert No. 1271/B

2 LIST OF CONTENTS Article 1 Preamble 2 Article 2 General Provisions 2 Article 3 Definition of Terms 2 SECTION 2 TECHNICAL CONDITIONS OF ACCESS TO STORAGE FACILITY 4 Article 4 Required Gas Pressure at the Entry Points to Storage Facility 4 Article 5 Gas Pressure Provided at the Exit Points from Storage Facility 4 Article 6 Quality Parameters of Gas 5 Article 7 Technical and Communication Criteria 6 SECTION 3 TECHNICAL CONDITIONS OF CONNECTION TO STORAGE FACILITY 6 Article 8 Required Pressure Level of Connected Equipment 7 Article 9 Method of Specifying the Point of Connection and the Measurement Point by POZAGAS 7 Article 10 Technical Requirements for Connected Gas Equipment 7 Article 11 Application for Connection to Storage Facility 8 SECTION 4 TECHNICAL CONDITIONS FOR DISCONNECTION FROM STORAGE FACILITY 10 Article 12 Reasons for Disconnection from Storage Facility from Technical, Operating or Safety Point of View 10 Article 13 Technical Procedure for Disconnection of Equipment Connected to Storage Facility 11 SECTION 5 TECHNICAL CONDITIONS FOR OPERATION OF STORAGE FACILITY 11 Article 14 Technical Conditions for Gas Measurement Basic Measurement Rules 11 Article 15 Operation and Checks of Measurement Equipment 12 Article 16 Principles of Procedure Following Failures and Damages to Measuring Equipment 13 Article 17 Principles of Storage Facility Operation and Management 13 Article 18 Description of Available Connection to Storage Facility 14 Article 19 Technical and Operational Limitations on Storage Facility 15 SECTION 6 TECHNICAL CONDITIONS OF GAS STORAGE INTERRUPTION 15 Article 20 Reasons for Interruption or Limitation of Gas Storage due from the Technical Point of View 15 Article 21 Procedural Principles of Planning and Implementation of Gas Equipment Reconstruction and Repair 17 Article 22 Procedural Principles during Accidents, Breakdowns, and Elimination of Consequences Thereof 18 SECTION 7 TECHNICAL CONDITIONS FOR MANAGEMENT OF STORAGE FACILITY 19 Article 23 Duties of Dispatching Control 19 Article 25 Technical Tools of Dispatching Control 22 Article 26 Principles of Co-operation Between POZAGAS and Connected Network Operators 22 Article 27 Principles of Storage Facility Management during Accidents and Emergency Situations 23 SECTION 8 TECHNICAL CONDITIONS OF TECHNICAL CO-OPERATION BETWEEN THE STORAGE FACILITY AND NETWORKS 24 Article 28 Technical Conditions of Interoperability of Storage Facility and Networks 24 at Points of Interconnection and Connection 24 Article 29 Description of Points of Interconnection 24 Article 30 Application for Interconnection 25 SECTION 9 TECHNICAL CONDITIONS FOR PROVISION OF OPERATING SAFETY AND RELIABILITY OF CONNECTIONS AND INTERCONNECTIONS 25 OF STORAGE FACILITY AND NETWORKS 25 Article 31 Procedure of Checking Technical Condition of Gas Equipment 25 at Points of Connection and Points of Interconnection 25 Article 32 Technical Conditions Applicable to Reconstruction of Gas Equipment 26 at Points of Connection and Points of Interconnection 26 SECTION 10 FINAL PROVISIONS 26 Article 34 Final Provisions 26 1

3 SECTION 1 GENERAL PROVISIONS Article 1 Preamble (1.1) POZAGAS, a. s., with its registered office at Malé námestie 1, Malacky, Slovak Republic, Organisation identification code: , registered in Commercial Registry of District Court Bratislava I, section Sa, insert No. 1271/B (hereinafter referred to as POZAGAS ), is the owner and operator of Underground Natural Gas Storage Facility Láb 4 (hereinafter also referred to as UNGSF Láb 4 ). (1.2) POZAGAS is required to provide reliable, safe and efficient operation of the UNGSF Láb 4 with due consideration of development of the storage facility and is required to provide transparent and non-discrimination access of gas market participants to the services provided by POZAGAS in line with the conditions set for in the Rules of Operation. (1.3) POZAGAS has elaborated this document under the title Technical Terms and Conditions of Access and Connection to Underground Natural Gas Storage Facility Láb 4 and of Operation Thereof (hereinafter referred to as the Technical Terms and Conditions ) because applicable laws impose such obligation on POZAGAS. Article 2 General Provisions (2.1) The Technical Terms and Conditions constitute conditions under which POZAGAS enables access to Underground Natural Gas Storage Facility Láb 4 and provides Gas storage services defined in the Rules of Operation. (2.2) Provisions of these Technical Terms and Conditions shall be binding upon POZAGAS and all of the Gas market participants. (2.3) Technical Terms and Conditions represents inseparable part of the Gas Storage Contract concluded in line with the Rules of Operation as well as Contract on Network Interconnection and Contract on Connection. Article 3 Definition of Terms (3.1) Capitalized terms used in these Technical Terms and Conditions, application for connection, application for interconnection, Contract on Connection, Contract on Network Interconnection, in correspondence and during communication with an applicant, a Customer and a Connected Network Operator, which were not defined in the Rules of Operation shall have the meaning assigned to them herein below: 1. Storage Facility Dispatching Centre the workplace of POZAGAS, where POZAGAS authorized personnel perform their continuous dispatching service, in which they implement a Customer s requests for injection, and/or withdrawal of gas to/from the Storage Facility and the requests for operations related thereto. This workplace is equipped with technical and communication means necessary for provision of dispatching service in accordance with these Technical Terms and 2

4 Conditions, as well as Gas Storage Contracts and Contracts on Network Interconnection. 2. Dispatching Centre of Connected Network the workplace of the Connected Network Operator, where the Connected Network Operator s authorized personnel perform their continuous dispatching service. This workplace is equipped with technical and communication means necessary for provision, in particular, for management of connected network and for exchange of the data necessary. 3. Measurement Point the point, where the measurements of specified Gas parameters (in particular the flow rate, pressure, temperature, composition, dew points) are carried out for purposes of commercial reconciliation between POZAGAS, Customers and/or the relevant Connected Network Operator, which use such measurement point. 4. Point of Connection the point, where the Connected Network Operator s equipment is physically connected to the Storage Facility equipment, and/or where such networks are interconnected. 5. MPa a multiple of basic pressure unit, i.e. 1,000,000 Pa. Such designated pressure shall mean overpressure, i.e. absolute pressure reduced by barometric pressure. 6. MPa abs. - a multiple of basic pressure unit, i.e. 1,000,000 Pa. Such designated pressure shall mean absolute pressure, i.e. overpressure increased by barometric pressure. 7. Gas Equipment equipment necessary to provide access to and operation of networks. 8. Rules of Operation shall mean the valid document Rules of Operation of POZAGAS, laying down commercial terms and conditions for access to and use of the services of the Storage Facility. 9. Contract on Network Interconnection a contract entered into by and between POZAGAS and the Connected Network Operator, with which the Storage Facility is physically interconnected. The subject-matter of the Contract on Network Interconnection shall be, in particular, ensuring operability of interconnected networks, management of Gas flow, specification of rules for measurement of Gas volume and quality, specification of rules for allocation of volumes at the relevant Entry-Exit (Handing-Over Acceptance) Point, exchange of information on the condition of interconnected networks. 10. Contract on Connection a contract entered into by and between POZAGAS and the Applicant for Connection to the Storage Facility, and the subject matter of which are mainly the terms and conditions and provision for a connection to the Storage Facility. 3

5 11. Applicant for Interconnection a natural person or a legal person requesting POZAGAS by way of a written application for interconnection pursuant to these Technical Terms and Conditions. 12. Applicant for Connection a natural person or a legal person requesting POZAGAS by way of a written application for connection pursuant to these Technical Terms and Conditions. SECTION 2 TECHNICAL CONDITIONS OF ACCESS TO STORAGE FACILITY Access to the Storage Facility the provision of Gas storage services defined in the Rules of Operation is possible only pursuant to provisions of the Rules of Operation and of these Technical Terms and Conditions. Article 4 Required Gas Pressure at the Entry Points to Storage Facility (4.1) The value of Gas pressure at the entry at the Entry-Exit (Handing-over - Acceptance) Points A and C shall be such that following its drop after transportation from the entry point to the Measurement Point its value at the Measurement Point would be equal or higher in each individual point than the following: a) at the Entry - Exit (Handing-over and Acceptance) Point A MPa b) at the Entry - Exit (Handing-over and Acceptance) Point C MPa abs. Article 5 Gas Pressure Provided at the Exit Points from Storage Facility (5.1) Gas pressure at the exit points reaches a value reduced by pressure losses during transportation of Gas from a pressure Measurement Point to the appropriate exit point, provided the pressure Measurement Point is situated before the exit point. If the pressure Measurement Point is situated after the exit point, the pressure of Gas at the exit point achieves a value increased by pressure losses during transportation of Gas from an exit point to the appropriate pressure Measurement Point. (5.2) Values of pressure, which are provided by POZAGAS at the Gas pressure Measurement Points are as follows: a) in case of withdrawal through the Entry-Exit (Handing-over and Acceptance) Point A for the following systems: A 1) Bratislava West...max. 3.9 MPa A 2) International pipeline...max. 5.2 MPa A 3) Transit system...max. 5.5 MPa b) in case of withdrawal through the Exit (Handing-over - Acceptance) Point B...max. 3.8 MPa 4

6 c) in case of withdrawal through the Entry-Exit (Handing-over - Acceptance) Point C,...max. 5.5 MPa abs. (6.1) Chemical composition of Gas Article 6 Quality Parameters of Gas methane CH4 minimum 85 mol% ethane C2H5 maximum 6 mol% propane C3H8 maximum 3 mol% butane C4H10 maximum 2 mol% heavier hydrocarbons C5 + maximum 1 mol% nitrogen N2 maximum 5 mol% carbon dioxide CO2 maximum 2 mol% oxygen O2 maximum 0.02mol% The parties hereto shall not change intentionally chemical composition of injected and withdrawn Gas. (6.2) Content of sulphuric components hydrogen sulphide H2S maximum 5.1 mg/sm 3 mercaptanes RSH maximum 15.3 mg/sm 3 total sulphur Stotal maximum mg/sm 3 (6.3) Combustion heat and Wobbe index Measured values refer to volume of Gas in Sm 3 and combustion temperature of 25 C a) Combustion heat: minimum MJ/Sm 3 maximum MJ/Sm 3 b) Wobbe index: minimum: MJ/Sm 3 maximum MJ/Sm 3 (6.4) Dew point of water in Gas intended for injection or withdrawal shall not be higher than minus eight C (-8 C), following conversion to the pressure of 4.0 MPa. If Gas Storage Contracts, which have been entered into prior to the effective date of these Technical Terms and Conditions, specify different values, the values agreed in such Gas Storage Contracts shall apply. (6.5) Dew point of hydrocarbons in Gas - no hydrocarbons may condense at the temperature of 0 C and higher and at the pressure ranging from 0.1 to 7.0 MPa. 5

7 (6.6) The temperature of the Gas to be handed-over and accepted shall be maximum plus fifty C (+ 50 C). (6.7) Gas, both injected and withdrawn, shall be ridded of solid and liquid contaminations and shall not be odorized. Article 7 Technical and Communication Criteria (7.1) A Customer as well as each Gas market participant that is connected or interconnected to the Storage Facility shall provide for the following functional means of technical and communication nature in continuous operation, intended for communication with the Storage Facility Dispatching Centre, related in particular to Nominations, Renominations, and management of a Gas physical flow: a) a device for sending out and receiving facsimile messages, with an activated fax line, to provide for written communication between the Parties (preferred system of written communication), or b) devices intended for phone connection by way of minimum two independent lines, where one shall be the main line, the other ones the reserve ones, c) access to the Internet with an active and secure box, after completing the Internet portal development. (7.2) Communication between the Storage Facility Dispatching Centre and a Customer by way of a phone connection shall be used if and when such communication is sufficient, or if connection by way of a facsimile line is not possible due to a failure. In such a case the Storage Facility Dispatching Centre and a Customer shall promptly confirm a telephone message in writing by using technical-communication means under item 7.1 (a) or (c) of these Technical Terms and Conditions. (7.3) The Parties shall inform each other forthwith on valid phone and facsimile numbers, addresses, authorized persons for communication pursuant to item 7.1 of these Technical Terms and Conditions. (7.4) POZAGAS reserves the right to change technical-communication means if technical development requires so. However, reasonable data transfer security must be ensured. SECTION 3 TECHNICAL CONDITIONS OF CONNECTION TO STORAGE FACILITY Connection to the Storage Facility is possible only provided the Applicant for Connection submits an application for connection, fulfils the Technical Terms and Conditions, and enters with POZAGAS into a Contract on Connection. A template of an application for connection is available on POZAGAS website. 6

8 Article 8 Required Pressure Level of Connected Equipment (8.1) The Applicant for Connection to the Storage Facility may request for connection of only such Gas Equipment whose pressure level is at least the same as the pressure level in equipment of the Storage Facility, to which it is going to be connected. (8.2) Equipment in the Storage Facility, to which other Gas Equipment may be connected, has the pressure levels PN 40, PN 75, and PN 100 according to the given Point of Connection, whereas PN shall designate the labeling of maximum operating pressure and number after the mark needs to be divided by 10, to get the pressure value expressed in MPa. Article 9 Method of Specifying the Point of Connection and the Measurement Point by POZAGAS (9.1) The Point of Connection of the Gas Equipment shall be specified by POZAGAS based on technical data included in an application for connection, in particular the maximum operating pressure, maximum injection flow rate, and maximum withdrawal flow rate, the purpose of the connected Gas Equipment, in a manner, which would allow POZAGAS to provide for safe operation and safe processes of Gas injection and withdrawal for all the Customers. (9.2) The Measurement Point shall be specified in the Contract on Connection in a manner, guaranteeing that the quantity of Gas and required measurement parameters of Gas are representative and unambiguous for purposes of compliance with commercial terms and conditions, and customary, to rule out any possibility of carrying out double measurements of the same quantity, or of its part only. Article 10 Technical Requirements for Connected Gas Equipment (10.1) The Gas Equipment to be connected shall be connected to the Storage Facility equipment as specified in the Contract on Connection, and in design documents elaborated by an authorized organization, and agreed upon by and between the Applicant for Connection and POZAGAS. Design documents shall be provided for by the Applicant for Connection at its own cost. (10.2) The period, over which the Applicant for Connection shall be obliged to implement the works at its own cost, shall be defined by POZAGAS in a manner, not limiting fulfillment and/or causing interruption of existing obligations of POZAGAS. The details concerning determination of the dates and the way of implementation shall be included in the Contract for Connection. (10.3) The connected Gas Equipment shall meet specifications stipulated in applicable standards and regulations for their manufacturing, installation and operation. 7

9 Article 11 Application for Connection to Storage Facility (11.1) An application for connection of the Gas Equipment to the Storage Facility shall include, in particular, the following: a) applicant s identification details (name and surname/business name, address/registered office, organization identification code, tax identification code, contact persons, phone, fax, ), b) definition of the Gas Equipment, which is to be connected to the Storage Facility based on given application, out of the following types: ba) transportation network, bb) distribution network, bc) storage facility, bd) withdrawal network, be) direct gas pipeline, c) the purpose, for which connected equipment shall be used, d) technical data of the connected Gas Equipment, in particular the following: da) required values of Gas flow rate, expressed in v Sm 3 per time unit, which shall be transported through the connected Gas Equipment to and from the Storage Facility, db) date of implementation of connection of the Gas Equipment, dc) commencement date of use of connected equipment, dd) termination date of use of connected equipment, de) termination date of connection of the Gas Equipment, df) dg) maximum operating pressure PN of connected equipment, proposal on measurement method of parameters of Gas, which will be flowing from the Gas Equipment into the Storage Facility, and/or in the opposite direction, namely the following: dg1) dg2) parameters to be measured using POZAGAS Measurement Points, or parameters to be measured on the connected Gas Equipment, stating the Measurement Points and description of technical specifications of measuring equipment. (11.2) The Applicant for Connection shall enclose to the application for connection the following documents: a) a certified copy of a trade certificate or an excerpt from commercial registry not older than thirty calendar days. Any legal person with registered office outside the territory of the Slovak Republic shall enclose a document equivalent to an excerpt from commercial registry, stating the persons authorized to act on behalf of the Applicant for Connection, as well as an excerpt from criminal registry of these officers, and/or a relevant document from the country of permanent residence of given person, b) an excerpt from criminal registry not older than 2 months, if the Applicant for Connection is a natural person, c) a licence for business operations in energy sector, d) original powers of attorney for each person, authorized by the Applicant for Connection to maintain communication with POZAGAS, stating his/her name, surname, position, 8

10 facsimile number and phone line numbers to be used for communication with given person, e) a declaration confirming binding nature of the data stated in an application for connection, which can not be changed or revoked prior to concluding the Contract on Connection, f) a proof showing that: fa) the Applicant for Connection is not being wound up, fb) the Applicant for Connection is not declared bankrupt, fc) no bankruptcy and/or composition proceedings were initiated against the property of the Applicant for Connection, fd) a proposal for bankruptcy proceedings against the property of the Applicant for Connection was not dismissed due to lack of property, fe) the Applicant for Connection has no tax arrears registered, ff) the Applicant for Connection has no unpaid obligations against POZAGAS, g) a declaration on following the Rules of Operation and of these Technical Terms and Conditions, h) a layout in cadastral map, showing in color the location of the required Point of Connection, including marked borders of the relevant land plot of public area. (11.3) The Applicant for Connection shall specify required data for each Point of Connection separately. (11.4) The application for connection shall be delivered in written form, however not in electronic format. (11.5) POZAGAS shall be entitled to require from the Applicant for Connection supplementary or additional information or documents, for the purpose of due and reliable assessment of the application for connection. (11.6) The application for connection and all the documents enclosed to it shall be in Slovak language or English language. (11.7) The obligation to submit an application for connection shall be required only for connection of gas equipment to the Storage Facility, which are to be connected after the date of effect of these Technical Terms and Conditions. (11.8) The application for connection represents a binding offer of the Applicant for Connection to enter into the Contract on Connection. (11.9) The application for connection, which shall be submitted by the Applicant for Connection to POZAGAS and all the documents submitted shall be duly and legibly completed and signed by authorized representatives of the Applicant for Connection. (11.10) The Applicant for Connection shall be obliged to deliver its application for connection, including any required annexes and documents at least one hundred and twenty business days prior to required date of commencement of works on implementation of connection of 9

11 the Gas Equipment to the Storage Facility, by mail or physical delivery to filing office of POZAGAS. (11.11) In case the Application for Connection does not include all the required requisites and if information provided in the Application for Connection is incomplete in view of due appraisal of the application, POZAGAS shall invite the applicant to complement those. The Application for Connection will not be taken into consideration by POZAGAS until the necessary data and/or missing documents are provided. If the applicant fails to complement the application within an appropriate period specified by POZAGAS, POZAGAS shall reject this application. (11.12) POZAGAS shall be entitled to reject the Application for Connection if the latter fails to meet all the requisites pursuant to these Technical Terms and Conditions. Rejected Applications for Connection shall not be assessed further by POZAGAS. SECTION 4 TECHNICAL CONDITIONS FOR DISCONNECTION FROM STORAGE FACILITY Article 12 Reasons for Disconnection from Storage Facility from Technical, Operating or Safety Point of View (12.1) POZAGAS shall be entitled to disconnect the connected Gas Equipment from the Storage Facility based on preceding announcement in particular for the following reasons: a) service life of the connected Gas Equipment or the Storage Facility equipment, specified in project design documents or an appraisal elaborated by an authorized organization, which has established the service life, has expired, b) the operator of the connected Gas Equipment has not been or is not observing these Technical Terms and Conditions and/or safety of operation of the Gas Equipment operated by them, c) technical condition or operation of the Gas Equipment connected to the Storage Facility reduces safety level of the Storage Facility operation or its technical, operating or economical development, d) the Contract on Network Interconnection was not entered into within two years from completion of the connection to the Storage Facility, pursuant to these Technical Terms and Conditions. (12.2) Operator of the connected Gas Equipment shall be entitled to disconnect its equipment from the Storage Facility only subject to prior consent from POZAGAS, under the following conditions: a) availability and safety of the Storage Facility is not endangered, b) disconnection will not have any negative impact on the rights and obligations of POZAGAS and/or its contractual partners. 10

12 Article 13 Technical Procedure for Disconnection of Equipment Connected to Storage Facility (13.1) The operator of the connected Gas Equipment shall be obliged, following a receipt of a call for disconnection from the Storage Facility delivered by POZAGAS, to provide for, at its own cost: a) consents from affected parties to disconnection of equipment from the Storage Facility, b) project design documents or technological procedures for the purpose of efficient and safe disconnection of the connected Gas Equipment from the Storage Facility, and to deliver them to POZAGAS for approval. (13.2) POZAGAS shall determine the date when the works for the purpose of disconnection of the connected Gas Equipment may be implemented, whereas such works may not limit or discontinue provision of contractually agreed services to other contractual partners. (13.3) The operator of the connected Gas Equipment shall be obliged to provide for disconnection of the connected Gas Equipment from the Storage Facility at its own cost on the date specified by POZAGAS. If the operator of the connected Gas Equipment fails to disconnect such equipment due to reasons on the part of the operator of the connected Gas Equipment by the specified date, POZAGAS shall be then entitled to provide for disconnection of the gas equipment at the cost of the operator of the connected Gas Equipment, whereas POZAGAS claims for damages shall remain unaffected. SECTION 5 TECHNICAL CONDITIONS FOR OPERATION OF STORAGE FACILITY Article 14 Technical Conditions for Gas Measurement Basic Measurement Rules (14.1) POZAGAS or the Connected Network Operator (in case measurement system of the Connected Network Operator shall be used) shall perform the following types of measurements: a) measurement of Gas volume in Sm 3 and/or energy in MJ (MWh), including measurements of Gas temperature and Gas pressure, b) measurement of Gas quality, c) measurement of the dew point of water in Gas and the dew point of hydrocarbons in Gas. To avoid any doubt with respect to measurement of Gas temperature and Gas pressure for a withdrawal through the Entry-Exit (Handing-over - Acceptance) Point C, the measurement by the Connected Network Operator at the Measurement Point in Baumgarten shall be used. (14.2) For the Entry-Exit (Handing-over and Acceptance) Point A and the Exit (Handing-over and Acceptance) Point B the measurement of Gas volume is performed on orifice metering trains pursuant to standard STN ISO and AGA NX 19. For the Entry-Exit (Handing-over and Acceptance) Point C the measurement of Gas volume shall be performed by turbine flow-meters pursuant to standards STN , OIML R6, 11

13 OIML R32 and ISO 9951, in accordance with the methodology of the company INSTROMET for given measurement equipment and AGA NX 19 and/or ZGERG 88. (14.3) Gas quality determination comprises determination of chemical composition of Gas, contents of sulphur components, combustion heat and Wobbe index. For the Entry-Exit (Handing-over and Acceptance) Points, Gas quality determination shall be performed continually using process chromatographs and/or, in case of a failure of process chromatograph, using laboratory chromatographs. (14.4) Measurements of the dew point of water in Gas for the Entry-Exit (Handing-over and Acceptance) Points are performed using continuous measurement equipment and, in case of a failure of continuous measurement equipment by discontinuous measurements. (14.5) Measurements of the dew point of hydrocarbons for the Entry-Exit (Handing-over and Acceptance) Points are performed using discontinuous measurements. Article 15 Operation and Checks of Measurement Equipment (15.1) Operation of measurement equipment shall comply with applicable laws, in particular the valid Act on Metrology. (15.2) The following rules apply for the Entry-Exit (Handing-over and Acceptance) Point A and the Exit (Handing-over and Acceptance) Point B: a) technical condition of metering trains and the appropriate orifices shall be checked in semi-annual periodicity, b) Gas quantity and volume counters shall be checked at least once in three months, c) Gas pressure and temperature transducers shall be checked at least once in three months, d) calibration of process chromatographs shall be performed in daily intervals, e) calibration of a laboratory instrument to determine sulphur components in gas shall be performed each time before an analysis of samples, f) calibration of a laboratory chromatograph shall be performed each time before an analysis of samples. In case of any doubts concerning correctness of measurements, the check of measurement systems shall be performed without undue delay. (15.3) For the Entry - Exit (Handing-over - Acceptance) Point C: a) precision of measurements by turbine gas meter shall be checked in monthly intervals, b) the low-pressure and high-pressure calibration of the turbine gas meter shall be performed in five-year intervals, c) the counters of Gas volume shall be checked in monthly intervals, d) Gas pressure and temperature transducers for injection and withdrawal shall be checked at least once in three months, 12

14 e) calibration of process chromatographs shall be performed in daily intervals, f) calibration of sulphur process chromatographs shall be performed in weekly intervals, g) calibration of a laboratory chromatograph shall be performed each time before an analysis of samples. In case of any doubts concerning correctness of measurements, the check of measurement systems shall be performed without undue delay. Article 16 Principles of Procedure Following Failures and Damages to Measuring Equipment (16.1) If any failure and/or damage to/of any of the measuring equipment is detected, an alternative measurement available to POZAGAS shall be used. (16.2) POZAGAS shall be obliged to provide, following detection of a failure and/or damage of/to the measuring equipment, without undue delay, for repair and/or replacement thereof. (16.3) POZAGAS shall invite the respective Connected Network Operator to participate in commissioning of repaired measuring equipment, and/or new measuring equipment. Article 17 Principles of Storage Facility Operation and Management (17.1) The purpose of the Storage Facility management is to provide for distribution of Gas flows taking into consideration geological and reservoir characteristics of the Storage Facility in such a way that Gas is stored in required gas volume at given time up to the sum of all required Working Gas Volumes, allocated by POZAGAS to individual Customers according to the Rules of Operation and the Gas Storage Contracts. (17.2) A Nomination from a Customer refers to required level of Injection Flow Rate, and/or Withdrawal Flow Rate, and the specification of the Entry-Exit (Handing-over and Acceptance) Point. A Customer using the Entry-Exit (Handing-over and Acceptance) Point C may request, in case it has activated the service of rebalancing Gas quality and pressure, for Gas processing also at pressure levels other than those set forth in items 4.1 and 5.2 of these Technical Terms and Conditions. (17.3) If the resulting request of all Customers for injection and/or withdrawal through the same Entry-Exit (Handing-over and Acceptance) Point causes the Gas flow rates at withdrawal to be lower than 20,000 Sm 3 /hour, or lower than 40,000 Sm 3 /hour at injection, POZAGAS shall be then entitled to propose to the affected Customers a program that would be closest to Customers Nominations and which would provide for flow rates higher than the minimum specified for given point. An affected Customer shall be obliged to give its statement to such proposed program within one (1) hour. If the affected Customer fails to give its statement within such period, POZAGAS shall understand that the affected Customer agrees with the proposed program. 13

15 (17.4) If the resulting request of all Customers for injection and withdrawal through the same Entry-Exit (Handing-over and Acceptance) Point leads to a physical change in Gas flow through this particular point, i.e. a change from injection to withdrawal or vice versa, POZAGAS shall be entitled to implement a change in flow only after two hours, when the flow-rate may be zero, based on the presumptions that a Customer announced regime change within the time specified in item 17.5 of these Technical Terms and Conditions. (17.5) If a Customer is entitled under the Gas Storage Contract to request for Gas injection or Gas withdrawal at any time throughout a given contractual year, in such a case the Customer may request POZAGAS for Gas withdrawal in the Gas injection period, or for Gas injection in the Gas withdrawal period no less than 24 hours prior to beginning of a given Gas Day. (17.6) If there is a need for a physical change in Gas flow through a given Entry-Exit (Handingover and Acceptance) Point during a given day, POZAGAS shall be entitled to implement a change in flow only after at least two hours, when the flow-rate may be zero. In such a case POZAGAS shall be entitled to propose an alternative program for all affected Customers in such way the alternative program is closest to an original program of all affected Customers for the given Gas Day. Specification of the alternative program cannot be deemed to be a breach of POZAGAS obligations from the Gas Storage Contract. An affected Customer shall be obliged to give its statement to such proposed program within one (1) hour. If the affected Customer fails to give its statement within such period, POZAGAS shall understand that the affected Customer agrees with the proposed program. (17.7) In case of an emergency caused by a Customer, which results in a change of flow rate of requirements of affected Customers, POZAGAS shall be entitled to propose an alternative program for all affected Customers in such way it is closest to an original program of all affected Customers for the given Gas Day. Specification of the alternative program cannot be deemed to be a breach of POZAGAS obligations from the Gas Storage Contract. An affected Customer shall be obliged to give its statement to such proposed program within one (1) hour. If the affected Customer fails to give its statement within such period, POZAGAS shall understand that the affected Customer agrees with the proposed program. Article 18 Description of Available Connection to Storage Facility (18.1) The following are connected, as of the date of publication of these Technical Terms and Conditions, by way of the Entry-Exit (Handing-over and Acceptance) Points pursuant to the Rules of Operation, including provision of commercial measurements: a) Connected Storage b) a distribution network on the territory of Slovak Republic c) transmission pipeline MAB on the territory of Austria 14

16 Article 19 Technical and Operational Limitations on Storage Facility (19.1) Technical limitations on the Storage Facility at the relevant Measurement Point are the following: a) for the Entry Exit (Handing-over and Acceptance) Point A the maximum operating pressure value is 5.5 MPa b) for the Exit (Handing-over and Acceptance) Point B the maximum operating pressure value is 3.8 MPa c) for the Entry-Exit (Handing over and Acceptance) Point C the minimum operating pressure value is 4.6 MPa abs. and the maximum operating pressure value is 7.2 MPa abs. (19.2) Pressure of Gas coming from connected networks at the Points of Connection shall not exceed the lower of the values of maximum operating pressure of interconnected networks equipment. (19.3) Gas quantities passing through the Entry-Exit (Handing-over and Acceptance) Points shall not be less than the following technical minimum limit: Sm3/hour at injection, or Sm3/hour at withdrawal. (19.4) Further limiting conditions, if any, shall be agreed by and between contractual partners in the Contract on Connection, the Contract on Network Interconnection, and the Gas Storage Contract. (19.5) The minimum operating pressures, maximum operating pressures and quantities of Gas for particular units of equipment shall be specified by POZAGAS based on the relevant technical possibilities determined by an authorized manufacturer of equipment, and the applicable regulations and standards effective in the Slovak Republic, and geological and operating potential of the Storage Facility. (19.6) Other operating limitations are defined in the Rules of Operation. SECTION 6 TECHNICAL CONDITIONS OF GAS STORAGE INTERRUPTION Article 20 Reasons for Interruption or Limitation of Gas Storage due from the Technical Point of View (20.1) Technical reasons for interruption or limitation of Gas storage are based on the Rules of Operation, hereinafter there are additional technical reasons, for which unscheduled interruption or limitation of storage shall be possible. (20.2) POZAGAS shall have the right of interrupting or limiting storage for an affected Customer, if these Technical Terms and Conditions, the Rules of Operation, Gas Storage Contract or Contract on Network Interconnection are not adhered to by the Customer or by an operator of connected gas equipment or the Connected Network Operator. 15

17 (20.3) If storage must be interrupted or limited, POZAGAS shall preferentially limit or interrupt provision of interruptible flow rates. If even a complete interruption of provision of interruptible flow rates is not sufficient with respect to overall potential of the Storage Facility, POZAGAS shall limit or interrupt provision of fixed flow rates to a necessary extent. (20.4) If Gas pressure at entry to the Storage Facility at the Measurement Point is lower than stated under 4.1 of these Technical Terms and Conditions or in the Gas Storage Contract and/or the Contract on Network Interconnection, POZAGAS shall have the right of limiting the Injection Flow Rate for an affected Customer to an extent leading to an increase in Gas pressure up to the level required. If the level required has not been achieved, POZAGAS shall be entitled to limit also the Injection Flow Rate of affected Customers whose Gas is injected through given point into the Storage Facility. POZAGAS shall limit storage proportionally to Nominations from those affected Customers whose quantities are being measured at a shared Measurement Point. (20.5) If Gas pressure at the exit from the Storage Facility at the Measurement Point is higher than stated under 5.2 of the Technical Terms and Conditions or in the Gas Storage Contract and/or the Contract on Network Interconnection, POZAGAS shall have the right of limiting the Withdrawal Flow Rate for an affected Customer up to an extent leading to a drop in Gas pressure up to the maximum level provided. If the maximum level provided is exceeded, POZAGAS shall be entitled to limit also the Withdrawal Flow Rate of affected Customers in a given day, whose Gas is withdrawn through given point from the Storage Facility. POZAGAS shall limit the withdrawal proportionally to Nominations from those affected Customers whose quantities are being measured at a shared Measurement Point. (20.6) If a reduction and/or interruption of operation had taken place due to technical reasons on the part of operators of connected Gas Equipment or of the Connected Network Operators at the Entry-Exit (Handing-over and Acceptance) Points, POZAGAS shall have the right of interrupting the storage or to limit the latter up to the degree necessary, proportionally to Nominations from affected Customers whose Gas is being transported by the equipment in question. (20.7) If the terms and conditions of interoperability of gas equipment at the Entry-Exit (Handingover and Acceptance) Points are not adhered to, POZAGAS shall have the right of interrupting or limiting injection or withdrawal at given point within the scope necessary, proportionally to Nominations from affected Customers whose Gas is being transported by the equipment in question. (20.8) If the quality parameters of Gas being injected are not in compliance with Article 6 of these Technical Terms and Conditions, and /or of the Contract on Storage, POZAGAS shall have the right of interrupting or limiting, to a necessary extent, storage up to the moment when Gas quality parameters are compliant with the Technical Terms and Conditions, proportionally to Nominations from affected Customers whose Gas is being transported by the equipment in question. 16

18 (20.9) If the quality parameters of Gas being withdrawn are not compliant with Article 6 of these Technical Terms and Conditions, and if these would become the reason for rejection of Gas transportation by a Customer, the operator of connected gas equipment, and/or the Connected Network Operator within their own network, POZAGAS shall interrupt or limit the withdrawal, up to an extent necessary and proportionally to Nominations from affected Customers whose Gas is being transported by the equipment in question. (20.10) Proportionate limitations related to individual Customers set forth in items through 20.8 shall apply only if a Customer fails to comply with contractual terms. (20.11) If any failure is identified on the Storage Facility Equipment, for remedy of which it would be necessary to shut-down a part or the whole Storage Facility (such a failure shall be understood, including but not limited to, Gas leakages identified at main pipelines, failures of measuring equipment, long-term interruption of electric power supply to the Storage Facility, serious failure of the Storage Facility control system (or any part thereof), POZAGAS shall interrupt or limit the storage, within the scope necessary: a) proportionally to Nominations from affected Customers, provided the failure has emerged in course of the given Gas Day, b) proportionally to current rights of affected Customers, provided the failure has emerged prior to the beginning of the given Gas Day, whereas POZAGAS shall interrupt or limit as first the storage on an interruptible basis and if it is still necessary, then also the storage on a fixed basis. (20.12) If an accident has happened at the Storage Facility, POZAGAS shall have the right of interrupting or limiting the storage, within the scope necessary over the period of liquidation of the accident and the consequences thereof: a) proportionally to Nominations from affected Customers, provided the failure has emerged in course of the given Gas Day, b) proportionally to rights of affected Customers, provided the failure has emerged prior to the beginning of the given Gas Day. Article 21 Procedural Principles of Planning and Implementation of Gas Equipment Reconstruction and Repair (21.1) During planned repairs and reconstructions of the Storage Facility equipment POZAGAS shall proceed in a fashion, where the works, which would have, as a consequence, limitation or interruption of storage, if possible, at the time of scheduled Shut-Downs. (21.2) If POZAGAS plans to perform reconstruction or repair at a Point of Connection, it shall send to the Connected Network Operator concerned an appropriate part of documents describing project design or technological procedure, based on which the reconstruction or repair is to be carried out not later than thirty calendar days prior to planned commencement of works. 17

19 (21.3) POZAGAS shall include in project collection documents or in technological procedure of reconstruction or repairs the measures aimed at elimination or reduction of risk, if requested to do so by the Connected Network Operator concerned. (21.4) POZAGAS shall allow the Connected Network Operator concerned to perform technical supervision at this Operator s own cost, at the Point of Connection during preparation and implementation of reconstruction or repairs, if the Connected Network Operator concerned assesses the works as posing risk for its equipment and if asks to have the possibility of performing technical supervision. (21.5) If the reconstruction or repair at the point of connection cannot be implemented according to the documents describing project design or technological procedure, and if it is not possible to interrupt the reconstruction or repair until these documents are modified, POZAGAS shall propose to the Connected Network Operator concerned an alternative procedure, which shall not be refused by technical supervision staff of the Connected Network Operator concerned or by its authorized representative, without any reasons. (21.6) POZAGAS shall notify the Connected Network Operators concerned of the commencement and completion of reconstruction works or repairs at the Point of Connection. (21.7) If reconstruction works, repairs or maintenance works (e.g. gas pipeline cleaning, internal pipeline inspection, etc.), which may affect the continuity of Gas injection and/or withdrawal into the Storage Facility, must be performed on the Storage Facility equipment in the period off the Shut-Downs, POZAGAS must notify the Customers concerned of such works and exert maximum efforts to minimize such influence. Article 22 Procedural Principles during Accidents, Breakdowns, and Elimination of Consequences Thereof (22.1) While identifying and eliminating any breakdowns, POZAGAS shall proceed in accordance with internal bylaws and the applicable legislation in effect in the Slovak Republic. Elimination of breakdowns shall be implemented, as a matter of priority, in a way not limiting and/or interrupting the storage. (22.2) In case the elimination of a breakdown would require limitation or interruption of storage, POZAGAS shall proceed pursuant to these Technical Terms and Conditions and the Rules of Operation. (22.3) During accidents and elimination of consequences thereof POZAGAS shall proceed in line with its emergency plans and other applicable legal regulations in effect in the Slovak Republic. If the situation requires limitation or interruption of storage, POZAGAS shall proceed pursuant to these Technical Terms and Conditions and the Rules of Operation. (22.4) If the emergency situation might endanger any of the Points of Connection, POZAGAS shall separate forthwith the Storage Facility equipment from the equipment of the Connected Network Operators concerned. 18

20 (22.5) If any handling is necessary with equipment at the Points of Connection, the Storage Facility Dispatching Centre shall invite the Dispatching Centre of Connected Network to provide the necessary assistance. (22.6) If such assistance cannot be provided and if the situation requires, POZAGAS shall be entitled to close its shutdown valves and to report this fact to the Connected Network Operator concerned. (22.7) In case any breakdown or emergency occurs on equipment of the operator of connected Gas Equipment or of the Connected Network Operator, POZAGAS shall provide the necessary assistance, in the range of its possibilities, to the operator concerned. After such an event is reported, the Storage Facility Dispatching Centre shall provide for implementation of the steps necessary, as a matter of rule for separation of a part of equipment of the operator concerned from the Storage Facility equipment, re-routing of Gas flows, adjustment of the flow rate or pressure, provided the Storage Facility equipment allows to do so. (22.8) If the operator concerned has closed its shut down valves at the Point of Connection or Interconnection without assistance of POZAGAS, such operator shall notify the Storage Facility Dispatching Centre of this fact. SECTION 7 TECHNICAL CONDITIONS FOR MANAGEMENT OF STORAGE FACILITY Article 23 Duties of Dispatching Control (23.1) The Storage Facility Dispatching Centre shall fulfill, in particular, the following duties: a) provision for continuous supervision of the Storage Facility operation, b) management of Gas flows, including proposing an alternative program of fulfillment of Customers requirements, in case of need, c) reception of Nominations and Renominations for Gas injection and withdrawal, d) check of compliance of Nominations and Renominations with provisions of Gas Storage Contracts, the Rules of Operation, Technical Terms and Conditions and Contract on Network Interconnection, e) communication with the Dispatching Centre of Connected Network and with Customers, for the purpose of safe operation of connected network and fulfillment of requirements from Customers, f) operational management of any situations, including non-standard situations within the Storage Facility, either directly or through a contractual partner, each time in cooperation with Dispatching Centres of Connected Networks (e.g. gas pipeline cleaning, internal gas pipeline inspection), g) reports on breakdowns of the Storage Facility equipment, h) alerting operational personnel at the workplaces of POZAGAS on the announced regulation levels of Gas or electric power consumption, i) duties following from internal safety regulations and guidelines of POZAGAS, 19

21 j) calling up for help and employees concerned, as stated in emergency plan of POZAGAS. Article 24 Dispatching Control of Gas Storage in Storage Facility (24.1) POZAGAS and a Customer shall directly exchange with each other necessary information, documents and instructions in connection with injection and withdrawal and the copies thereof shall be forwarded to the Connected Network Operator. (24.2) A Customer shall be obliged to send to the Storage Facility Dispatching Centre its weekly Nomination for injection and/or withdrawal of Gas for the next week, starting on Monday at 8:00, not later than by 13:00 on Friday immediately preceding the Monday concerned, when the Customer s requirements under the submitted Nominations start to be performed, specifically in a daily breakdown of both daily and hourly flow rates, if the Gas Storage Contract allows so, specifying whether it is a fixed service or an interruptible service. If the Gas Storage Contract does not allow so, POZAGAS shall allocate to a Nomination an hourly flow rate specified as the quotient of daily flow rate divided by 24 hours. (24.3) A Customer shall be entitled to nominate a variable hourly flow rate during a Gas Day if the Gas Storage Contract allows so, whereas such hourly flow rate may not exceed the maximum hourly flow rate for the given Gas Day specified as the maximum daily flow rate for the given Gas Day/24. POZAGAS shall be entitled to suggest to a Customer an alternative program if, as a result of reviewing requirements from all the Customers for a given Gas Day, an hourly flow rate for a certain hour is lower than the technical minimum specified in item 19.3 of these Technical Terms and Conditions. (24.4) A Customer shall be entitled, no later by within 12:00 p.m. of a current Gas Day, if the Gas Storage Contract allows so, to request for a change in fixed nominated hourly flow rates for the remaining part of the given Gas Day: a) at least two hours before the required change of hourly flow rate, b) if the required hourly flow rate does not exceed the maximum hourly flow rate specified in the Gas Storage Contract or specified as the quotient of the maximum daily flow rate for a given Gas Day/24. POZAGAS shall confirm such change of hourly flow rates provided that such change does not affect fulfillment of all already confirmed flow rates of the other Customers. (24.5) A Customer shall be entitled, if the Gas Storage Contract allows so, to change its Nominations based on Renominations sent to POZAGAS not less than four (4) hours prior to commencement of the given Gas Day. POZAGAS shall be entitled to reject a Nomination and/or Renomination delivered by a Customer to the Storage Facility Dispatching Centre after expiration of time periods specified for delivery of Nominations and/or Renominations. 20