Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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Effective Date: 06/03/2007, Docket: RP07-441-001, Status: Effective

Substitute Second Revised Sheet No. 34 Substitute Second Revised Sheet No. 34 : Effective

Superseding: Sub. First Revised Sheet No. 34

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

 

17. REMEDIES

17.1 No provision of these General Terms and Conditions regarding

specific remedies shall bar Transporter from asserting any

other remedy it may have at law or in equity.

 

17.2 In the event of a bona fide dispute between the Parties with

respect to any invoices, Transporter shall have the right to

discontinue the transportation of gas beginning 30 days after

the issuance of a final nonappealable decision by a court of

competent jurisdiction in favor of Transporter, if Shipper has

failed to remedy or correct such violation within said 30-day

period.

 

18. SERVICE AGREEMENT/RIGHT OF FIRST REFUSAL PROCESS

 

Shippers under firm contracts, with a term of 12 consecutive months or

more at maximum rates, or multi-year seasonal maximum rate contracts

for services not offered for a full 12 months, may exercise the Right

of First Refusal. Such agreements are not subject to pregranted

abandonment provided notice is given as described herein. A firm

Shipper may elect to retain a portion of its capacity, subject to the

Right of First Refusal process and have Transporter's pregranted

abandonment authority apply to the remainder of the capacity. A firm

Shipper may not segregate its contract by geographic areas in

exercising the Right of First Refusal. A Shipper paying a discounted

rate or a negotiated rate will not have the Right of First Refusal,

unless otherwise agreed to in writing by Transporter. Transporter and

a Shipper under a firm contract may agree that Shipper shall have the

right to extend the term of its existing contract pursuant to a

negotiated contractual right of first refusal provision, which right

shall be exercised in accordance with Sections 18.2 - 18.6, below.

Transporter is not obligated to offer or agree, nor is Shipper required

to agree, to any such contractual right of first refusal provision,

provided, however, that to the extent Transporter offers or agrees to

any such contractual right of first refusal provision, it must do so on

a nondiscriminatory basis for similarly situated Shippers. A

discounted or negotiated rate contract in effect on March 27, 2000 will

be grandfathered and allowed the tariff Right of First Refusal at

expiration of the contract. However, such grandfathered contract

thereafter must be extended at maximum rates to keep the tariff Right

of First Refusal, unless otherwise agreed to in writing. The process

for exercising the tariff Right of First Refusal is as follows: