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. 110 Original Sheet No. 110

 

GENERAL TERMS AND CONDITIONS

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2. PRIORITY OF SERVICE

 

2.1 ALLOCATION OF CAPACITY

 

(a) GENERAL

 

This Section 2.1 governs the allocation of firm

capacity on KMLP's System among entities requesting firm services in

assigning priority to otherwise valid requests for any particular firm

service.

 

(1) In applying such criteria where a Negotiated

Rate or Negotiated Rate Formula is involved, the value assigned to a

request which includes a Negotiated Rate or Negotiated Rate Formula

shall be limited by the Recourse Rate as provided in Section 30 of

these General Terms and Conditions. KMLP shall not be required to

grant otherwise valid requests at less than the applicable maximum

rate, but may do so on a non-discriminatory basis.

 

(2) (i) Any award and allocation of capacity

under this Section 2.1 must include both Leg 1 and Leg 2 capacity. For

each 1 Dth per Day of Leg 1 capacity allocated, the Shipper must also

be allocated 0.5939 Dth per Day of Leg 2 capacity ("Capacity Ratio").

 

(ii) If at the end of any primary or extended

term, a Shipper affects a decrease (or increase) in Shipper's MDQ on

Leg 1, a decrease (or increase) equal to fifty nine and thirty nine

hundredths percent (59.39%) of such change will also occur on Leg 2.

This same Capacity Ratio will also apply to any permanent assignment

or capacity release under a FTS Agreement and will be maintained in

any FTS Agreement resulting from such assignments or releases.

 

(3) With respect to any quantities of Gas

nominated for transportation through the Leased Capacity on NGPL as

described in Section 1.20, Shipper's Gas will be required to comply

with the quality specifications of NGPL's FERC Gas Tariff as in effect

from time to time.

 

(b) CAPACITY AWARD PROCEDURES

 

This Section 2.1(b), together with Sections 2.1(c)

and 16 of these General Terms and Conditions, sets out the procedures

to be followed by KMLP in awarding all firm forward-haul transmission

capacity becoming available on its System; provided, however, that

these procedures do not apply to the initial allocation of such firm

capacity created by the construction of new facilities (including both

extensions and expansions of KMLP's System).