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. 137 Original Sheet No. 137 : Effective
GENERAL TERMS AND CONDITIONS
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(4) To the extent less volumes have been
delivered on any Day which are not accounted for by applying steps
(1) through (3), such shortfall shall be allocated for that Day to
the point operator's account and shall be subject to charges under
Section 9 of these General Terms and Conditions [it being
understood that the allowable balancing service to be provided
without additional charge under Section 9 has already been provided
under step (2) above].
(d) To be eligible for a Point Operator Allocation
Agreement, a prospective point operator must meet the same
creditworthiness standards as a Shipper. Further, KMIP and the
point operator must not have previously entered into such an
agreement which was terminated because of point operator's failure
to perform.
(e) Unless otherwise agreed by KMIP or otherwise
provided herein, cash-out procedures shall not apply to volumes in
a point operator's account; provided, however, that any volume
remaining in operator's account upon termination of a Point
Operator Allocation Agreement shall be cashed-out based on the
cash-out prices for the last Month such agreement was in effect.
The point operator may transfer gas out of its account by
submitting nominations for transportation subject to ordinary
confirmation and scheduling procedures.
(f) KMIP may cancel any Point Operator Allocation
Agreement in the event that point operator's account exceeds a
reasonable level in relation to the MDQ at the point(s) covered, if
the point operator does not take reasonable steps to rectify
imbalances on a timely basis, or if the point operator exceeds with
unreasonable frequency the 2% Monthly restriction under this
Section. Nothing herein is intended to restrict KMIP's right to
terminate in accordance with its terms any Point Operator
Allocation Agreement entered into hereunder, including without
limitation the right to terminate because of point operator's
failure to perform consistent with its obligations under the Point
Operator Allocation Agreement.
(g) Aggregators of supply at any point which do not
control physical operation of the point may request that they be
allowed to enter into allocation agreements similar to Point
Operator Allocation Agreement(s) as to specified volumes or