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
2. PRIORITY OF SERVICE
2.1 ALLOCATION OF CAPACITY
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
(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).