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. 131 Original Sheet No. 131 : Effective

 

 

GENERAL TERMS AND CONDITIONS

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7. DETERMINATION OF DAILY RECEIPTS

 

7.1 To the extent feasible, all volumes received by KMIP at

a Receipt Point identified in Section 1.28 of these General Terms

and Conditions shall be allocated in accordance with the confirmed

nominations for that point. In the event the actual volumes

received by KMIP do not equal the confirmed nominations for that

point, any underage or overage will be allocated as follows:

 

(a) First, in accordance with the effective

predetermined allocations (PDAs) submitted by those entities

(Allocators) owning or controlling the gas being delivered to

KMIP. An operational balancing agreement (OBA) is one type of a

PDA. Shipper agrees that such an allocation is binding on Shipper.

 

(b) Then, if there is no effective PDA, pro rata to

the extent applicable based on confirmed nominations or transfer

nominations, as applicable. Shipper agrees that such an allocation

is binding on Shipper.

 

7.2 The upstream or downstream party providing the point

confirmation should submit the PDA to the allocating party after

or during confirmation and before the start of the Day, except

that no other PDAs need be submitted if an OBA is in effect at a

point. Unless otherwise agreed, all PDAs must be submitted to KMIP

through KMIP's Interactive Website or through EDI before the start

of the Day the PDA is to be effective. Such PDA shall specify how

any underage or overage from the confirmed nominated volumes

should be allocated among the entities listed on the PDA. KMIP

shall acknowledge receipt and acceptance of the PDA through KMIP's

Interactive Website or EDI if received through KMIP's Interactive

Website or via EDI if received via EDI. Such notification of

acknowledgment and acceptance will be within fifteen (15) minutes

of receipt via KMIP's Interactive Website if received via KMIP's

Interactive Website or via EDI if received via EDI. KMIP's

acceptance is contingent on KMIP being able to administer the

allocation submitted by the Allocator. Allocation methodology

types upon which two parties may agree are: ranked, pro rata,

percentages, swing and operator provided value. Other examples of

allocation methods which can be used are matching of supply

sources with specified customers, and combinations of methodology

types. Different methods may be submitted for overages or

underages. If the parties cannot agree, Section 7.1(b) shall

apply.