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. 118 Original Sheet No. 118

 

GENERAL TERMS AND CONDITIONS

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(3) POSTING OF CRITERIA

 

KMLP shall post the criteria to be used in the

determination of highest economic value for comparing valid bids in

any open season and for comparing pending requests which are valid and

competing. The posting will consist of a net present value formula,

together with all relevant factors and parameters, such as discount

rates. These criteria shall be posted continuously on the

Informational Postings portion of KMLP's Interactive Website. KMLP may

change the criteria at any time in a manner not inconsistent with the

other provisions of this Section 2.1(c), but the revised criteria may

only be applied to an open season the posting of which commenced at

least one (1) Business Day after the change in criteria has been

posted. KMLP cannot change the criteria for any on-going open season.

The revised criteria shall apply immediately to all requests received

after the change has been posted. In addition, the posting for each

individual open season will include the following elements: the date

to which all bids are discounted in the calculation of net present

value; the discount rate utilized; how a Shipper's willingness or

unwillingness to prorate will affect its bid; whether a prearranged

transaction is involved and, if so, whether there is a right to match;

the extent to which advance payments will be considered in evaluating

bids; how surcharges and optional service charges will be take into

account; and the procedure to be used in breaking ties.

 

(4) OBLIGATION TO AWARD CAPACITY

 

(i) KMLP shall be obligated to award firm

capacity if the applicable maximum rate is submitted for the entire

term of a valid bid in any open season or is requested for the entire

term of a valid request under the Request Procedure, up to the firm

capacity covered by the maximum rate bid(s) or request(s), without

regard to any reserve price. If such a maximum rate bid or request is

received, KMLP shall be obligated to award the capacity either to the

Shipper submitting such a valid bid or request or to a competing

bidder or requestor. The capacity award will be based on the posted

criteria hereunder for evaluating bids or requests.

 

(ii) KMLP shall be obligated to award firm

capacity if the reserve price is met in a valid bid for the capacity

being posted for open season, up to the firm capacity covered by the

bid(s) meeting the reserve price. The capacity awards will be based on

application of the posted criteria.