Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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Effective Date: 05/01/2002, Docket: RP02-202-000, Status: Effective

Second Revised Sheet No. 19 Second Revised Sheet No. 19 : Effective

Superseding: Original Sheet No. 19

 

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

 

f. Imbalance gas; and

g. Unauthorized contract overrun deliveries (when no-notice

service not available).

 

8.2 At any receipt or delivery point, Transporter will allocate flows to

Shippers according to the following methodology:

 

a. Gas will be allocated first to firm transportation through the

point, up to the daily nomination. If insufficient gas is

available to satisfy firm nominations, the available gas will

be allocated pro rata based on firm nominations;

 

b. Any remaining volumes will be allocated pro rata to

interruptible transportation based on the approved nominations.

 

c. The transportation priority for fuel shall be the same as the

level of service as the transaction to which it applies.

 

8.3 PREDETERMINED ALLOCATION AGREEMENTS. Transporter will enter into

mutually acceptable predetermined allocation agreements with upstream

or downstream parties to accommodate allocation methodologies

different than that outlined in Section 8.2. The allocation

methodology types which two parties may agree upon are ranked, pro

rata, percentage, swing and operator provided value. If the two

parties cannot agree upon an allocation methodology, pro rata based

upon confirmed nominations shall be used as the default method. The

party responsible for custody transfer (the party performing the

measurement function) shall provide the allocation. Two welded

parties shall agree on who submits a pre-determined allocation

methodology and who allocates at the point before gas flows. There

is no need to submit pre-determined allocation if a transportation

service provider has an operational balancing agreement in effect for

a point. Only one pre-determined allocation methodology shall be

applied per allocation period. The upstream or downstream party

providing the point confirmation shall submit the pre-determined

allocation to the allocating party after or during confirmation and

before start of gas day. The allocating party shall send back

confirmation of receipt of the pre-determined allocation within

fifteen minutes. Transporter will accept GISB approved allocation

methodology types from the upstream or downstream custody transfer

party who is providing the point confirmation.