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. 143 Original Sheet No. 143

 

GENERAL TERMS AND CONDITIONS

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6.12 SEGMENTATION

 

(a) A Shipper may segment its firm capacity to the

extent operationally feasible through the nomination process. In

addition, any Shipper may segment its firm capacity by releasing one

or more segments of that capacity (the Releasing Shipper may retain

one or more segments of its capacity), to the extent operationally

feasible, by following the procedures set out in Section 14 of these

General Terms and Conditions. In the case of segmentation through

release, the Original Shipper may segment by nomination any portion

of the capacity it retains to the extent operationally feasible and

the Replacement Shipper may segment by nomination any portion of the

capacity it obtains in the release to the extent operationally

feasible.

 

(b) For the purposes of this Section 6.12 and subject to

the other provisions hereof, whether segmentation is through

nomination or results from the release of firm capacity on a

segmented basis, the primary path under an Agreement may be

segmented, and segmentation may extend outside the primary path to

the extent consistent with this Sections 6.12, and such segmentation

shall be deemed operationally feasible unless:

 

(1) the segmentation would result in an increase in

firm contractual obligation by KMLP on any segment or portion of its

system (through an overlap of segments); or

 

(2) the segmentation would result in a forward-haul

in a direction opposite to the primary path of the Agreement being

segmented [backhauls are addressed in (d) below].

 

(c) In the event a firm capacity path is segmented under

this Section 6.12, each segment shall have access to all secondary

points on KMLP's system. Any point which is outside the primary path

for the segment shall be treated as out-of-path secondary in

relation to nominations for that segment. In the case of a

segmented release, if nominations result in an overlapping path,

through nomination at out-of-path secondary points, overrun charges

for volumes in excess of the MDQ under the original Agreement in the

area of overlap shall be applied as follows: