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.