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. 54 Original Sheet No. 54 : Effective

 

 

 

26.2 GAS SUPPLY REALIGNMENT TRANSITION COSTS.

 

Beginning March 1993, Transporter will make available for review

its gas supply contracts which Transporter has determined are not

required to provide MSS Service. Within seven (7) business days

after the Commission issues an order accepting Transporter's

revised Compliance Filing in Docket No. RS92-19, all parties are

free to submit to Transporter, written notice of their binding

election to take direct assignment of specific Transporter supply

contracts. Parties have the right to take assignment of

Transporter's non-CAM gas, to the extent that parties also takes

assignment of the same percentage of net present value share of

CAM gas. Full assignment of contracts will become effective upon

implementation of Transporter's Compliance Filing under Order Nos.

636, 636-A and 636-B. After seven (7) business days from the date

the Commission issues an order accepting Transporter's revised

Compliance Filing in Docket No. RS92- 19, Transporter may buyout

or realign its remaining CAM gas supply contracts which have not

been assigned. GSR costs shall include buyout, buydown or other

reformation costs relating to CAM gas contract activity plus

carrying charges.

 

a. DEFINITIONS.

 

(1) CAM Gas - Gas which Transporter has under contract and

is currently priced at or above $2.50 per MMBtu

delivered into Transporter's pooling receipt point and

for which Transporter has no contractual right to

terminate the contract, market out, reduce takes, or

control production.

 

(2) NPV of CAM Gas - The net present value discounted cash

flow of the total projected cost of CAM gas over a

twenty (20) year period.