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. 131 Original Sheet No. 131

 

GENERAL TERMS AND CONDITIONS

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5. NEW FACILITIES CHARGE

 

5.1 (a) With respect to new or expanded interconnection

facilities, when such new and/or expanded facilities are required to

accommodate receipt and/or delivery of Gas under a request for new

or revised service, and KMLP determines that installation of such

facilities will not impair service to any existing Shipper or

threaten the integrity of KMLP's System, KMLP will construct such

facilities but, unless otherwise provided by contract, KMLP shall

require Shipper to pay as the CIAC as defined in Section 1.7 of

these General Terms and Conditions, except that KMLP will pay the

cost of such facilities when the criteria set forth in Section 5.2

are satisfied.

 

5.2 (a) KMLP will pay the cost of the modification or

construction of facilities required at Receipt or Delivery Point(s)

to effectuate the receipt or delivery of Gas hereunder when the

construction or modification of such facilities is economically

beneficial to KMLP. KMLP may conclude that a portion of the

facilities are economically beneficial.

 

(b) (1) For the purposes of determining whether a

project for access to Gas supply is economically beneficial to KMLP,

KMLP will evaluate each prospective project based upon the amount of

the reserves and/or deliverability characteristic of the Gas supply

to be attached. Facility additions at Receipt Points shall be

evaluated based upon the incremental cost of service of the

facilities to be constructed by KMLP, and the incremental revenues

which KMLP estimates will be generated as a result of constructing

and/or modifying such facilities.

 

(2) For purposes of determining whether a project

to deliver Gas is economically beneficial to KMLP, KMLP will

evaluate each prospective project based upon the incremental cost of

service of the facilities to be constructed by KMLP, and the

incremental revenues which KMLP estimates will be generated as a

result of constructing and/or modifying such facilities.