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