Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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Effective Date: 07/01/2003, Docket: RP03-372-000, Status: Effective

Original Sheet No. 53E.04 Original Sheet No. 53E.04 : Effective

 

GENERAL TERMS AND CONDITIONS - continued

 

iii. All recalled Capacity notices must indicate whether

penalties will apply for the Gas Day for which quantities are reduced

due to a Capacity recall.

 

D. Quantity Allocation

 

In the event of an Intra-Day Capacity recall, Transporter

shall determine the allocation of capacity between the Releasing

Shipper and the Replacement Shipper(s) based upon the Elapsed Prorata

Capacity (EPC). In any recall notification provided to Transporter,

the quantity must be expressed in terms of the adjusted total released

Capacity entitlements based upon EPC. EPC means that portion of the

Capacity that would have theoretically been available for use prior to

the effective time of the Intra-Day recall based upon a cumulative

uniform hourly use of the Capacity. The amount of the capacity

allocated to the Replacement Shipper(s) must equal the original

released Capacity less the recalled Capacity that is adjusted based

upon the EPC. Transporter shall not be obligated to deliver in excess

of the total daily contract quantity of the release as a result of any

recall. The service flexibility available to either the Releasing

Shipper or the Replacement Shipper for the subject Capacity shall not

be less as a result of the recall.

 

E. Disputes

 

In the event of a dispute between the Releasing Shipper and

any other person as to the validity of any recall or reput, or the

status of the holder of the Capacity rights, Transporter shall be

entitled to conclusively rely on any notice provided by the Releasing

Shipper. The Original Shipper, Replacement Shipper and/or

Subreplacement Shipper involved in any such dispute shall indemnify and

hold Transporter harmless from any costs, damages or expenses relating

to Transporter's reliance on such notice.