Kinder Morgan Louisiana Pipeline LLC
Original Volume No. 1
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Effective Date: 03/01/2009, Docket: RP09-257-000, Status: Effective
Original Sheet No. 101 Original Sheet No. 101
GENERAL TERMS AND CONDITIONS
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1.7 CONTRIBUTION IN AID OF CONSTRUCTION OR CIAC
"Contribution in Aid of Construction" or "CIAC" shall,
unless otherwise mutually agreed, mean the payment made to KMLP for
the installation of new or expanded facilities at interconnection
points for the receipt by KMLP or the delivery by KMLP of gas on
behalf of Shipper or the construction of line heater equipment
(where applicable) on behalf of Shipper. Unless otherwise agreed,
the CIAC shall include all construction costs, including any filing
fee (Investment Costs), on a mutually agreed payment schedule. In
addition, if applicable, Shipper shall provide a reimbursement
amount to compensate for income tax effects associated with such
facilities (Tax Reimbursement). The Tax Reimbursement, where
applicable, shall be an amount to compensate for the income tax
effects of the CIAC, according to the following formula;
Tax Reimbursement = [tax rate x (Investment Cost -
present value of tax depreciation)] x [1 + {tax rate/(1 - tax
rate)}]
1.8 DAILY INDEX PRICE OR DIP
"Daily Index Price" or "DIP" shall mean for any Day the
volume weighted average of the midpoint prices published for such
Day, using flow Day and volume data as shown in the Daily Price
Survey of Gas Daily for the following indices under the category
Louisiana-Onshore South:
Gas Daily Index
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NGPL, La
Transco, Zone 2 (less intrazone IT and fuel
rates for Zone 2 set out in Transco's
FERC Gas Tariff)
Columbia Gulf, Mainline
Transco, Zone 3 (less intrazone IT and fuel
rates for Zone 3 set out in Transco's
FERC Gas Tariff)
Texas Eastern, West La
Florida Gas, Zone 2
ANR, La
Texas Gas, Zone SL
Trunkline, W. La
Tennessee, La., 800 Leg