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. 142 Original Sheet No. 142
GENERAL TERMS AND CONDITIONS
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6.10 NOMINATION PRIORITIES
As part of the nomination and transfer nomination process,
if there is more than one supply source nominated to be delivered to a
single Delivery Point or buyer, the nomination or transfer nomination
must identify how and which supply sources should be cut in the event
all nominated deliveries are not or cannot be made. Similarly, the
nomination or transfer nomination must identify which delivery should
be cut in the event Gas is not or cannot be received as nominated
(i.e., ranking). Ranking is to be included in the list of data
elements. KMLP is to use Shipper provided rankings when making
reductions during the scheduling process when this does not conflict
with tariff-based rules.
6.11 OPERATIONAL BALANCING
KMLP agrees that it will negotiate with each entity that
operates facilities interconnecting with KMLP at Delivery Points
(Balance Operator) in a good faith effort to reach an agreement to
deal with imbalances at such Delivery Point(s) (at Receipt Points,
KMLP may rely on PDAs under Section 7 of these General Terms and
Conditions), which OBA Agreement would be a form of a Predetermined
Allocation, subject to the following conditions:
(a) Such agreement must set out a mutually agreeable
procedure for dealing at the Delivery Point(s), as between KMLP and
Balance Operator, with any difference between confirmed nominations
and actual physical Gas flow caused by operational conditions; such an
agreement may include imbalances charges and penalties, and/or
limitations on the volume of imbalance which may be accommodated, but
KMLP is not obligated to agree to include any provisions for cashout
of imbalances;
(b) The Balance Operator must meet the same
creditworthiness standards as Shipper;
(c) KMLP and Balance Operator must not have previously
entered into such agreement which was terminated because of Balance
Operator's failure to perform. Nothing herein is intended to restrict
KMLP's right to terminate in accordance with its terms any agreement
entered into hereunder, including without limitation the right to
terminate for Balance Operator's failure to perform consistent with
its obligations under the agreement.