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. 139 Original Sheet No. 139 : Effective

 

 

GENERAL TERMS AND CONDITIONS

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9. BALANCING SERVICE AND OVERRUN CHARGES

 

9.1 GENERAL

 

This Section applies to transportation services provided

under Rate Schedules FTS and ITS. Each Shipper has the obligation

to ensure actual volumes delivered to KMIP at Receipt Points and

actual volumes taken from KMIP at the Delivery Point conform to the

volumes nominated by the Shipper and confirmed by KMIP each Day.

 

9.2 BALANCING SERVICE AND OVERRUN CHARGES DURING NON-

CRITICAL TIMES

 

(a) During periods when a Critical Time is not in

effect, if actual receipts and deliveries under an Agreement at a

point on any Day do not conform to a Shipper's rights under its

Agreement(s) or to the sum of its confirmed nominations after

receipts and deliveries are allocated consistent with Section 7 or 8

of these General Terms and Conditions, as applicable, the following

Overrun Charges and Balancing Service Charges shall apply:

 

(1) In the event that receipts or deliveries

allocated to a Shipper under said Section 7 or 8 at any point or

under any Agreement exceed Shipper's available firm contractual

rights (MDQ), an Overrun Charge shall apply. Specifically, the

Overrun Charges set out herein shall apply to volumes taken or

tendered in excess of MDQ under Rate Schedule FTS. Overrun charges

shall also apply to volume taken or tendered in excess of Shipper's

MDQ or nominations under Rate Schedule ITS. Overrun volumes shall be

deemed authorized overrun if tendered or taken pursuant to confirmed

nominations. In the case of authorized overrun, as reflected in

overrun requests properly submitted by Shipper and accepted by KMIP

(i.e., a confirmed nomination), the applicable maximum Overrun

Charge for transportation under Rate Schedule ITS shall be the

stated Authorized Overrun Rate (which shall equal the maximum Rate

Schedule ITS rate), and for firm transportation shall be a maximum

Authorized Overrun Rate determined on the same basis as the maximum

rate for Rate Schedule ITS (i.e., the maximum Authorized Overrun

Rate for Rate Schedule FTS would equal the maximum rate for Rate

Schedule ITS) multiplied by the number of Dth of the authorized

overrun gas. Such Authorized Overrun Rates may be discounted on a