Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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Effective Date: 12/01/2007, Docket: RP08- 34-000, Status: Effective

Original Sheet No. 119 Original Sheet No. 119 : Effective

 

 

GENERAL TERMS AND CONDITIONS

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5. NEW FACILITIES CHARGE

 

5.1 When new and/or expanded facilities are required to

accommodate receipt and/or delivery of gas under a request for new

service, and KMIP determines that installation of such facilities

will not impair service to any existing Shipper or threaten the

integrity of KMIP's System and is not inconsistent with the point

limitation in Sections 1.5 and 1.22 of these General Terms and

Conditions, KMIP will construct such facilities but KMIP shall

require Shipper to pay all construction costs, including any

filing fees and a reimbursement amount to compensate for federal

income tax effects associated with such facilities, except that

KMIP will pay the cost of such facilities when the criteria set

forth below are satisfied.

 

5.2 (a) KMIP will pay the cost of the modification or

construction of facilities required at Receipt or Delivery

Point(s) to effectuate the receipt or delivery of natural gas

hereunder when the construction or modification of such facilities

is economically beneficial to KMIP. KMIP may conclude that a

portion of the facilities are economically beneficial.

 

(b) (1) For the purposes of determining whether a

gas supply project is economically beneficial to KMIP, KMIP will

evaluate each prospective project based upon the amount of the

reserves and/or deliverability characteristic of the gas supply to

be attached. Facility additions at Receipt Points shall be

evaluated based upon the incremental cost of service of the

facilities to be constructed by KMIP, and the incremental revenues

which KMIP estimates will be generated as a result of constructing

and/or modifying such facilities.

 

(2) For the purposes of determining whether a

project to deliver gas is economically beneficial to KMIP, KMIP

will evaluate each prospective project based upon the incremental

cost of service of the facilities to be constructed by KMIP, and

the incremental revenues which KMIP estimates will be generated as

a result of constructing and/or modifying such facilities.

 

(3) In estimating the incremental revenues to be

generated, KMIP will base those revenues upon transportation rates

it expects to be able to charge, exclusive of any surcharges, such

as an ACA charge, and the projected incremental volumes which will

result from the project. KMIP will consider volumes to be

incremental if the volumes which will be transported would not

otherwise flow through KMIP's System.