Kinder Morgan Interstate Gas Transmission LLC

Second Revised Volume No. 1-D

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Effective Date: 12/28/1999, Docket: GT00- 19-000, Status: Effective

Original Sheet No. 20 Original Sheet No. 20 : Effective

 

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

 

11.3 Transporter shall, to the extent reasonable,

deliver volumes for Shipper's account concurrently

with the receipt of Receipt Volumes. It is

recognized that the Parties may be unable to

control exactly the quantities of gas received and

delivered on any Day and that the quantities

received by Transporter may vary from the

quantities delivered on any Day. Such variations

shall be subject to the daily balancing provision

in the applicable Buffalo Wallow Rate Schedule.

Monthly cumulative net variations may result in

the application of charges as provided in the

Buffalo Wallow Rate Schedules. Shipper and

Transporter shall manage the receipts and

deliveries so that the difference between receipt

volumes and delivery volumes shall be kept as near

zero as practicable, taking into account any Fuel

Reimbursement Quantity and other deductions.

Further, Transporter shall be under no obligation

to accept from Shipper gas in excess of the

Approved Daily Nomination for the Receipt Point

for that Day.

 

12. IMBALANCES

 

Transporter shall not be responsible for eliminating

any imbalances in volumes between Shipper and any third

party, including imbalances between local distribution

companies and specific end users. Furthermore,

Transporter shall not be obligated to deviate from its

standard operating and accounting procedures in order

to reduce or eliminate any such third party imbalances.

No imbalance penalty shall be imposed when a prior

period adjustment applied to the current period causes

or increases a current month penalty.

 

13. POSSESSION OF GAS

 

13.1 Shipper agrees to indemnify and hold Transporter

harmless against any loss or cost incurred by

Transporter on account of any liens, encumbrances

and claims whatsoever. Transporter agrees to

indemnify and hold Shipper harmless against any

loss or cost incurred by Shipper on account of

liens, encumbrances or claims resulting from any

possession or transportation by Transporter.