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. 132 Original Sheet No. 132

 

GENERAL TERMS AND CONDITIONS

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(3) In estimating the incremental revenues to be

generated, KMLP will base those revenues upon transportation rates

it expects to be able to charge, exclusive of any surcharges, such

as an ACA charge, and the projected incremental volumes which will

result from the project. KMLP will consider volumes to be

incremental if the volumes which will be transported (or equivalent

volumes from other sources) would not otherwise flow through KMLP's

System.

 

(4) Based on the above listed criteria, the

economic value of a project shall be determined using the discounted

cash flow rate of return methodology with the minimum acceptable

rate of return to be published from time to time on KMLP's

Interactive Website. When the present value of the incremental

revenues from the project is greater than the present value of the

incremental cost of service, KMLP will pay for the cost of the

contemplated facilities. When the present value of the incremental

revenues from the project is less than the present value of the

incremental cost of service, Shipper shall pay for the cost of the

contemplated facilities.

 

5.3 Unless otherwise provided by contract, when KMLP has

previously paid for Receipt or Delivery Point facilities under this

facilities reimbursement policy, Shipper shall, nevertheless,

promptly pay KMLP for KMLP's net book value of such facilities when

either of the following events occurs: (a) when KMLP's ability to

fully recover such costs is denied in any rate proceeding under

Section 4 or Section 5 of the Natural Gas Act; or (b) when Shipper

ceases operations at the facilities.