Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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Effective Date: 06/01/2003, Docket: RP00-343-006, Status: Effective

Third Revised Sheet No. 42 Third Revised Sheet No. 42 : Effective

Superseding: Original Sheet No. 42

 

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

 

22.5 OWNERSHIP OF LIQUIDS/PROCESSING RIGHTS

 

Shippers have the right to process their own gas, or have their

gas processed by a third party, unless otherwise provided by

contract. Transporter recognizes Shipper's ownership rights to

products removed from the gas. If gas is processed by

Transporter, absent any other agreement, the Shipper will receive

credit for extracted products based on allocated volumes and

compositions at applicable receipt points to Transporter's

transmission system, as follows: 98% of residue gas, 50% of net

hydrocarbon liquids proceeds, and 20% of net helium proceeds.

Transporter will individually negotiate on a non-discriminatory

basis other processing arrangements with Shippers. If Transporter

has Shipper's gas processed through a third party plant, and

Shipper does not have a processing agreement with the third party

plant, Transporter will pass through to Shipper all residue gas

and net liquids proceeds received from the third party processor.

 

22.6 SCHEDULING PRINCIPLES

 

a. The order for scheduling transportation services is as

follows:

 

(1) Firm Services at primary points (scheduled pro rata

based on nominations);

 

Firm Services within the primary path will be

scheduled across a constraint within the primary path

equally regardless of whether primary or secondary

receipt or delivery points are being utilized.

 

(2) Firm Services at secondary points (scheduled pro rata

based on nominations);

 

Firm Services at secondary points within the primary

path have priority over Firm Services at secondary

points outside the primary path

 

(3) Interruptible services at maximum (scheduled pro rata

based on nominations);