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: