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. 237 Original Sheet No. 237 : Effective

 

 

GENERAL TERMS AND CONDITIONS

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(1) In order to improve System operations, KMIP

may require a Shipper which has a variance of twenty percent (20%) or

more between actual deliveries to KMIP at a Receipt Point and the

confirmed nomination at that Receipt Point to conform the deliveries

to the confirmed nomination as of the Day that commences with the

effectiveness of the Operational Flow Order.

 

(f) A Shipper shall not be subject to overrun penalties

and charges from KMIP or Balancing Service Charges with respect to any

action taken in reasonable conformance with an Operational Flow Order

issued by KMIP during a Critical or non-Critical Time.

 

(g) Any Receipt or Delivery Point where the variance

between the total confirmed nominations and actual flows is less than

500 Dth per Day or where KMIP does not have either daily metering or

access to such information shall be exempt at all times, including

during a Critical Time, from Operational Flow Orders requiring that

gas flows be conformed to nominations or to some percentage of

nominations.

 

(h) Within thirty (30) days after an Operational Flow

Order has been lifted, KMIP will post on its Interactive Website a

report which describes the specific operational factors which caused

the Operational Flow Order to be issued and to be lifted.

 

32.7 CRITICAL TIME

 

(a) KMIP shall advise Shippers on its System if it is

declaring a Critical Time, as described in Section 9.5 of these

General Terms and Conditions, and shall specify the nature of the

situation creating the Critical Time.

 

(b) KMIP may issue Operational Flow Orders as described

in Section 32.6 during a Critical Time.

 

(c) The penalty for failure to abide by an Operational

Flow Order issued during a Critical Time shall be equal to the volume

(in Dth) by which Shipper deviated from the requirement of the

Operational Flow Order multiplied by the greater of (i) $15.00 or (ii)

the sum of three hundred percent (300%) of the highest authorized

overrun rate which can be applicable to an FTS Agreement on KMIP's

system pursuant to Section 9 of these General Terms and Conditions

plus three hundred percent (300%) of the highest Weekly Index Price

used to determine the Average Monthly Index Price (as determined in

accordance with Section 10 of these General Terms and Conditions) for

the Month in which the violation occurred.