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. 162 Original Sheet No. 162 : Effective

 

 

GENERAL TERMS AND CONDITIONS

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(d) In the event KMIP constructs new lateral facilities

to accommodate a Shipper, KMIP may (unless otherwise agreed) require

from the Shipper security in an amount up to the cost of the

facilities. This provision does not apply to mainline expansions. Such

security may be in any of the forms available under Section 12.1(b) of

these General Terms and Conditions, at Shipper's choice. KMIP is only

permitted to recover the cost of facilities once, either through rates

or through this provision. As KMIP recovers the cost of these

facilities through its rates, the security required shall be reduced

accordingly. Specifically, collateral provided by Shipper related to

new facilities shall be returned to that Shipper in equal Monthly

amounts over the term of its contract for service related to the new

facilities or as otherwise mutually agreed by KMIP and Shipper. Where

facilities are constructed to serve multiple Shippers, an individual

Shipper's obligation hereunder shall be for no more than its

proportionate share of the cost of the facilities. This requirement is

in addition to and shall not supersede or replace any other rights

that KMIP may have regarding the construction and reimbursement of

facilities.

 

(e) KMIP may not take any action under this Section 12.1

which conflicts with any order of the U.S. Bankruptcy Court.

 

12.2 (a) (1) If at any time KMIP reasonably determines

based on adequate information available to it that a Shipper is not

creditworthy under Section 12.1(a) of these General Terms and

Conditions or if Shipper fails to maintain assurance of future

performance under Section 12.1(b) of these General Terms and

Conditions, KMIP may notify such Shipper in writing that it has five

(5) Business Days to provide KMIP with security consistent with

Section 12.1(b) of these General Terms and Conditions which is

adequate to cover all charges for one Month's advance service. In

addition, within thirty (30) days after such notification, the Shipper

must fully comply with the means for adequate assurance of future

performance, covering the full level of collateral provided for under

Section 12.1(b) of these General Terms and Conditions. If the Shipper

has not satisfied the requirements in either of prior two (2)

sentences by the end of the specified prior notice period, KMIP may

immediately suspend service to Shipper. KMIP may terminate service if

it has complied with the procedures in Section 12.2(d) of these

General Terms and Conditions.

 

(2) If KMIP does not have sufficient information

to determine whether Shipper is creditworthy, it may request