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. 117 Original Sheet No. 117

 

GENERAL TERMS AND CONDITIONS

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(ii) KMLP shall limit the rights of the

Shipper awarded the capacity to the interim time period, so that the

Shipper has no rollover rights or rights of first refusal which extend

beyond the interim time period. KMLP will indicate in any open season

posting for such capacity the limitation on rights which will apply to

such firm capacity awarded for the interim time period.

 

(c) EVALUATION OF COMPETING BIDS AND REQUESTS

 

In comparing valid bids received in an open season

or in comparing two or more valid and competing pending requests for

service under the Request Procedure, KMLP will award firm capacity

based on the highest economic value, as defined in this Section

2.1(c).

 

(1) HIGHEST ECONOMIC VALUE

 

The highest economic value is the highest net

present value of the stream of incremental revenue produced in the

aggregate by a valid bid or request, or combination of valid bids or

requests, received by KMLP for firm capacity which is consistent with

the reserve price where one has been established. Incremental revenue

is the additional revenue KMLP would collect from a Shipper under any

bid or request over and above the revenue KMLP would otherwise have

received after taking into account any revenue lost or affected by the

bid or request (i.e., where an existing capacity holder submits a bid

or request which is contingent upon turnback by that existing capacity

holder of an existing capacity commitment, only the value of such a

bid or request net of the revenue which would be lost to KMLP due to

the turnback of the existing contractual commitment will be

considered).

 

(2) ONLY GUARATEED REVENUE CONSIDERED

 

In the determination of highest economic

value, KMLP shall consider only reservation charge revenue and any

other guaranteed revenue under bids or requests which meet any

applicable reserve price. In the case of a bid or request for firm

service involving a Negotiated Rate or Negotiated Rate Formula, the

rules for calculating net present value set out in Section 30 of these

General Terms and Conditions shall apply.