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. 119 Original Sheet No. 119

GENERAL TERMS AND CONDITIONS

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(iii) Notwithstanding the foregoing, KMLP may,

but shall not be obligated to, award firm capacity based on the

following types of otherwise valid bids or requests: (a) any bid or

request for a term of less than one Year, under which service is to

commence more than ninety (90) days following close of the open

season; and (b) any bid or request for a term which is not continuous

from the commencement of service date to the termination of service

date reflected in the bid.

(5) RESERVE PRICE MATRIX

In an Initial Open Season, KMLP shall

establish a reserve price or reserve price matrix. KMLP may, but is

not required to, establish a reserve price or reserve price matrix in

an Additional Open Season.

(i) A reserve price defines the minimum

price(s) at which KMLP will award the firm capacity covered by the

open season, which price(s) must be equal to or less than the

applicable maximum rate(s). KMLP is not obligated to award capacity at

less than the applicable maximum rate unless a lower rate is set out

in the reserve price matrix. In determining whether a reserve price

has been met by any bid, KMLP will compare the net present value of

the requested prices in the bid with the net present value of the

applicable reserve price(s). If the reserve price is met, KMLP will

award firm capacity to valid bids consistent with the posted bid

evaluation criteria and this Section 2.1(c).

(ii) Reserve prices in a reserve price matrix

may vary by relevant elements, including but not limited to term,

service type, Receipt Points, Delivery Points and markets. Differences

in "markets", as that term is used in the prior sentence, shall refer

to differences relating to any of the following: (A) defined

geographical areas, where the value of KMLP's services may vary among

such geographical areas due to current or projected differences in

competitive alternatives, regulation, or operational, supply or

capacity factors; (B) customers, where the value of KMLP's services

may vary by customer due to current or projected differences in

competitive alternatives available to them or demand their

characteristics (including access to alternative fuels); (C) contract

time periods, where the value of KMLP's services may vary due to

current or projected differences in competitive alternatives or market

demand at or over different contract time periods (for example, winter

season versus multi-Year); (D) products and services, where the value

of KMLP's product and service offerings may vary due to current or