Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 01/01/2004, Docket: RP04- 68-000, Status: Effective

First Revised Sheet No. 187 First Revised Sheet No. 187 : Effective

Superseding: Original Sheet No. 187

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

25. MCF TO DTH CONVERSION METHODOLOGY

 

25.1 Applicability. This Section applies to all Shippers receiving firm

service pursuant to Transportation Service Agreements executed on

an Mcf basis under Rate Schedule KRF-1, CH-1, UP-1, MO-1 or SH-1.

 

25.2 Conversion Methodology. Effective May 1, 2002, Transporter will

convert any Maximum Daily Quantities (MDQs) stated in

Transportation Service Agreements on a volumetric (Mcf) basis to

Demand Maximum Daily Quantities (DMDQs), Transportation Maximum

Daily Quantities (TMDQs), and Receipt and Delivery Point

Entitlements, all on a thermal (Dth) basis, using the methodology

described in this Section.

 

25.3 DMDQ. For the purpose of determining a Shipper's obligation to pay

daily reservation/demand charges, Transporter will convert the MDQ

stated in the Shipper's Transportation Service Agreement to a DMDQ

by multiplying such Shipper's MDQ by Transporter's weighted

average, system-wide Btu factor. This factor is the weighted

average Btu per cubic foot of gas that flowed under all firm

service agreements on Transporter's system during the twelve-month

period from October 1, 2000 through September 30, 2001, divided by

1000.

 

25.4 TMDQ. For the purpose of determining a Shipper's right to

receive firm Transportation on the mainline, Transporter will

convert the MDQ stated in the Shipper's Transportation Service

Agreement to a TMDQ by multiplying such MDQ by Shipper's base

average Btu factor. Shipper's base average Btu factor is the

weighted average Btu per cubic foot of gas that flowed under

Shipper's Transportation Service Agreement during the twelve-month

period from October 1, 2000 through September 30, 2001, divided by

1000.