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. 149 Original Sheet No. 149 : Effective

 

 

GENERAL TERMS AND CONDITIONS

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(b) Following any offsetting with other Shippers, a

Shipper's remaining imbalance will be cashed out based on the

percentage of that imbalance compared to the total receipts for that

Shipper during the Month. For example, if the total receipts were

1,000 Dth and the remaining underage imbalance after offsetting with

other Shippers was 100 Dth, the total Imbalance Level would be 10%.

The first 5% (50 Dth) would be cashed out at 100% of the AMIP and

the remaining 50 Dth would be cashed out at 110% of the AMIP.

 

(c) The Average Monthly Index Price (AMIP) is the

arithmetic average of the Weekly Index Prices (WIPs). The WIP for

any week is the average index price reported in 'Weekly Gas Price

Index' issued by "Natural Gas Intelligence" under the caption

"Midwest, Chicago Citygate."

 

In calculating the AMIP, the WIPs will be based on

the prices reported in the issue of "Natural Gas Intelligence" dated

on or after KMIP's nomination deadline for first of the Month

service for that Month, and the subsequent issues dated prior to

KMIP's nomination deadline for the following Month's first of the

Month service.

 

(d) Following the ten (10) Day period for offsetting

imbalances, Shippers with remaining imbalances shall pay KMIP or

will be credited with the appropriate cashout amounts.

 

(e) In the event "Natural Gas Intelligence" ceases to

publish entirely or fails to publish the index prices listed in

subsection (c) above, the following procedures shall apply in

determining a Month's AMIP:

 

(1) Should, in any given week, "Natural Gas

Intelligence" fail to publish the index price used in determining

that week's WIP, there will be no WIP for that week used in

determining the Month's AMIP.

 

(2) Should, in a given Month, there be less than

two WIP's available for the AMIP calculation, the following

alternate AMIP procedures will apply: The AMIP will be defined as

the arithmetic average of:

 

(i) The closing price for the NYMEX

natural gas futures contract applicable to the Month in which the

imbalance was created (i.e., the price at which that Month's

contract "went off the board"); and